Objective
A borrower aimed to save his Noe Valley, San Francisco property from foreclosure, complete its remodel, and sell it to resolve his financial issues.
Challenge
The borrower, who owned the property for ten years, faced economic hardships due to COVID-19, causing him to fall behind on his payments. His first lender initiated foreclosure actions, putting his property at risk.
Solution
The borrower turned to Saxe Mortgage, a specialist in hard money loans for bad credit, for assistance. Saxe Mortgage provided a second loan of $1.6 million, based on 70% Loan to Value (LTV), to help the borrower reinstate his first loan, complete the remodel, and secure a 12-month interest reserve.
Outcome
- Avoided Foreclosure: The loan from Saxe Mortgage allowed the borrower to reinstate his first loan and halt foreclosure actions.
- Access to Capital: The $1.6 million loan enabled the borrower to complete the property remodel, increasing its market value.
- Time to Sell: With a 12-month interest reserve, the borrower had sufficient time to market and sell the property at a favorable price, ensuring all debts were paid off.
Conclusion
This case study illustrates how hard money loans for bad credit can provide crucial financial support in challenging times. Saxe Mortgage, as a bad credit hard money lender, offered a strategic solution that allowed the borrower to save his property, complete necessary renovations, and secure financial stability. This successful intervention showcases the value of hard money loans in addressing urgent financial needs and real estate investment opportunities.