Help! Bank won`t renew the mortgage...

[Empireproperties]

Hello everyone,

I bought my condo 3years ago for 283,000 in downtown Calgary. The unite appraised for 320,000 at the time. We arrange for the mortgage with 15%down (first national). We furnished the suite very nicely and rented out to executives between 1800 to 2200 per month.
Few months ago, at the time of mortgage renewal, we find out the bank won`t renew the mortgage, because they discontinue the program.
I was able to manage to get another mortgage for 75% Ltv. And the new appraisal for unite is 253,000. So, I need to come up with 49,000 to close this deal. This is the money that I don`t have right now.
If I list the untie in mls with realtors fees and legal fees I would loose all my down payment of 50,000.
I would love to do Jv deal or willing to sell the unite with all the furniture and accessories if any one interested.

Please, any advise or solution to this problem would be appreciated.

Thanks in advance!

 

[bizaro86]

QUOTE (Empireproperties @ Nov 12 2010, 04:21 PM) Hello everyone,

I bought my condo 3years ago for 283,000 in downtown Calgary. The unite appraised for 320,000 at the time. We arrange for the mortgage with 15%down (first national). We furnished the suite very nicely and rented out to executives between 1800 to 2200 per month.
Few months ago, at the time of mortgage renewal, we find out the bank won`t renew the mortgage, because they discontinue the program.
I was able to manage to get another mortgage for 75% Ltv. And the new appraisal for unite is 253,000. So, I need to come up with 49,000 to close this deal. This is the money that I don`t have right now.
If I list the untie in mls with realtors fees and legal fees I would loose all my down payment of 50,000.
I would love to do Jv deal or willing to sell the unite with all the furniture and accessories if any one interested.

Please, any advise or solution to this problem would be appreciated.

Thanks in advance!

I would probably have a mortgage broker look at this and see if you are able to get a better offer (80% LTV should be possible, would that make it do-able for you to put up the cash?) and/or a better appraisal.

Alternatively, you could try to sell it privately. My email is in my signature, send me the details (size, # of bedrooms, current rent, address, floor #, condo fees, and taxes) and I`ll take a look at it for you. I might be interested in buying it.

Michael

 

[RobMacdonald]

There is one lender that I know of that will lend up to 90% of the value of the property. The rates are on the higher side, but not the typical private lending rate you might expect.

It sounds like your mortgage would have been insured with First National through CMHC originally. You may have an option to transfer the mortgage to another lender, and you might be able to avoid the appraisal or at least get a second opinion.

Key is finding the right lender.

 

[Thomas Beyer]

QUOTE (Empireproperties @ Nov 12 2010, 05:21 PM) ..

Please, any advise or solution to this problem would be appreciated.
..
Some thoughts:

a) get a 2nd appraiser that may appraise it higher
b) get a mortgage broker ASAP .. and get a new 80% mortgage or renew at THE SAME level if CMHC insured (is it ?)
c) I assume you are a (recent?) immigrant: improve your English writing abilities (I am one too, btw)
d) get your personal tax and networth information in order .. 3 years .. ready to be sent via PDF within a moment`s notice .. is it impeccably arranged .. if you do not have Canadian income for 2 or 3 years it is much harder today to get an 80% mortgage
e) in parallel: try a private sale but that is VERY hard .. but 250K seems awfully low for a fairly new 2BR new condo !
f) be more careful next time .. use less leverage !

btw: What is your name, phone number and e-mail address ? [it should be in your footer]

 

[Empireproperties]

QUOTE (bizaro86 @ Nov 12 2010, 04:29 PM) I would probably have a mortgage broker look at this and see if you are able to get a better offer (80% LTV should be possible, would that make it do-able for you to put up the cash?) and/or a better appraisal.

Alternatively, you could try to sell it privately. My email is in my signature, send me the details (size, # of bedrooms, current rent, address, floor #, condo fees, and taxes) and I`ll take a look at it for you. I might be interested in buying it.

Michael


Thanks Michael,

I will contact you soon.

 

[Empireproperties]

QUOTE (RobMacdonald @ Nov 12 2010, 04:53 PM) There is one lender that I know of that will lend up to 90% of the value of the property. The rates are on the higher side, but not the typical private lending rate you might expect.

It sounds like your mortgage would have been insured with First National through CMHC originally. You may have an option to transfer the mortgage to another lender, and you might be able to avoid the appraisal or at least get a second opinion.

Key is finding the right lender.


Hi there;

Thanks for your advise. This is a small 1 bedroom condo in Highrise building. My mortgage broker told me because of these reasons (size, highrise building) and I`m being self-employed, this is the best option for me.
I don`t beleive this is a CMHC insured mortgage, but I will ask again to make sure.