Recent Closing - Need for Private Funders

With the market in it's dilapidated state, many institutional lenders are cutting back or completely pulling out of deals that were a 'slam dunk' as recent as 6 months ago - even on deals that they have already committed to but not funded.

This was the situation that one of my sub-agents found himself in early last month. An institutional 'B' lender committed to a deal verbally at 85% - but a week later only issued a commitment to 75% leaving his client short over 40k with one week to close. This was a shock since the client had a near perfect credit history/score and fit well within the lenders published guidelines; and since the property was a new build - this could not have been the reason for the cutback.

After my agent hit his head against the wall for a few days - his time was running out and he gave me a call. I called a private lender and he verbally committed on the phone and issued a commitment the following business day. To make matters worse on this deal, the client had a sick parent and was all but absentee coming up to close. This deal was closed on my agents affirmation that his clients income/job was solid, the purchase and sale agreement, the initial application, and an appraisal - income docs were waived. Even the standard inspection was waived on a 'makes sense' basis.

Sources like this, whom conduct themselves in a true 'makes sense' basis, are few and far between. Feel free to contact me if you are a no-nonsense lender or a client that is looking for one. I can always use more of both.

- Bryce Coates