Can I get a loan?? Don't want to lose this one!

[a6721]

:-[
I live in AR, had a state income tax lien placed on my home last month. (don't ask, it was a dumb mistake!) Can't get it cleared up fast enough to be able to work this deal.

I had been working on a deal in OK, just across the state line, for the past six weeks. I had already taken my banker by there, and he figured the "as is"  value to be about $120,000, and would loan $85 to $90,000 on a construction loan, to purchase and rehab. The value after completion would be $155 to $165,000.  The house is 2000+ SF and sits on 20 acres. It was listed for $44,000 and I was going to offer $30,000, figuring that we would come to an agreement at about $35,000.  

Things can change in a matter of minutes!  My banker got the "monthly" and saw the income tax lien.  My FICO has dropped to 631 from 753. Banker says to get it cleared up, or at least give him more information on it. I don't have the money to pay it, ($17,000), however, my attorney says to submit an offer in comprise.  The original bill is about $5,000 from 2000. This will take time.

Then yesterday I found out that the deal in OK,  is going to be foreclosed on, and I only had days  to put an offer on it. Soooo, last night I went and put an offer in on it.  They have until Thurs to accept. After checking with the county records, etc... I offered $18,500.  The chances are good that they will accept, as they owe less than $11,000, live in Kansas, and are in desperate need to get rid of it.  The agents have shown this property since middle Jan. and has had lots of interest, but the house needs a lot of work. I have a solid crew that I work with, so I wasn't concerned.  Most of the folks that looked at it, wanted to live in it and there was just too much work to be done.

Is there any financing out there that can help with this situation?  Since I live in the neighboring state, the AR lien doesn't fall over to OK.  I either need enough to hold on to this for the next say six months, by which time the lien should be taken care of and I can get the construction loan as I had planned, or I need a loan of $75,000 so I can complete this deal.  Any suggestions?  Is this impossible to do?  ANY suggestions would be more than welcomed and appreciated. Thanks!


 
 
 

[Investment Loans]

If you were given a 70% loan based upon the after repaired value, would this be enough to cover paying off the tax lien, costs, 4 months of payments, fixing it up, and purchasing?

If so, a hard money lender may be willing to do the loan.

With the #s you had, it looks like it may come up a bit short but still within workable reason.  However the tax lien would be eating into most of your profits.  

The tax lien may not even need to be paid off since it is not Federal and cannot attach to the property.

[a6721]

Hi!  The tax lien I know nothing about.  I have been told that it would not go across the state line, so would not affect this property, but I don't know that for sure.  I do know that it made my lender choke!  

I am not trying to pay that off, as my attorney is working on an offer in comprise.  He seems to think that he can get it down to around $5000, as it is something from 2000. Nor do I know how long it will take, but he seems to think that it shouldn't take too long.  For this property, two weeks is too long!

The way that I was figuring this property was with no more than a 55% loan of the after repaired value.  However, having never dealt with anyone other than my own banker, I don't know how others will figure the appraisal, what the costs will be, etc...  My banker, on construction loans, is able to do the valuation on his own.  I can only trust his judgment and my own.  Most land around here is selling from $3,000 and up for any amount of acreage.  Smaller acreage goes up to $25,000.  The house is one that had been started, and never finished.  The top floor is just studs.  Lots to do, but a good foundation to start from.  I guess what I need is someone who knows more than I do to give me some tips!  Thanks for your time, this is a wonderful forum.  

[Investment Loans]

You should be ok it the lien can't attach to the property.  If you'd like  to get a copy of that credit report we can get to the bottom of what can be done.

I'm thinking you'll be ok and end up with a nice profit.

[a6721]

 :-[
Thanks for your reply Ben.  When I said I didn't know about the lien, what I meant was that I didn't know what affect it would have with lenders, not that I didn't know what it was for.  It is for additional state tax that was owed from 2000, and just got put on my credit report.  I do have a lawyer trying to get it fixed.  Thanks again!