So it turns out that the auction will be postoned for one month because the owners miraculously convinced the lenders that they will get financing in another month.Â
The lenders also said that the interest rate goes from 10.5% to 17% when the property is in default, which will drive up the amount owed by 17%/12 percent this month alone. And of course, they promise the auction won’t be delayed again.
This was not what I wanted to hear.
On a positive note, I wrote some of the investors in the local REI club and got some responses. Maybe I can find an EB to guide me along this process.  Marching on…
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Talk about loan sharks.Â
One lender wanted 5 points down and 17%, and a private lender wanted 2 points down, 15%. I did find one that would give me no point down and 13.49%, but that’s unconfirmed until tomorrow. I would happily take that loan.
But until I sign a contract, I have no financing. If you are reading this and have some ideas of where else I can get financing, please write and let me know!
The auction is finally coming on the 10th of this month, but I still don’t have funding. I can put down the 5% but in Palm Beach county, you need to come up with the rest of the 95% by the end of the day. Typically conventional lender won’t lend with out a sales contract, which of course, you don’t get until after you have paid the winning bid price.
I’ve gone through the newspapers looking for people who would lend short term loan for this, left phone messages with a bunch of them, actually one guy picked up (11:30pm!), and we’ll talk again tomorrow. It’s coming down to the wire; I hope I can find a money partner, or else no deal. 