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Just Approved: Broker helps borrower overcome past foreclosure

  • Jay Sondhi Photo: Jay Sondhi / ONLINE_YES


Mortgage broker: Jay Sondhi.

Property: Two-unit property in Diamond Heights.

Appraised value:

$1.6 million.

Borrowing amount:

$1.12 million.

Loan type: 5/1 ARM.

Rate: 5.375 percent with no points, 5.543 percent APR.

Backstory: Sondhi’s client wanted to purchase the duplex where he rented a unit, but he had a recent foreclosure in June 2011. Most lenders require at least seven years to have passed before a borrower can again be eligible for a new home loan.

Sondhi learned his client’s employer at the time of the foreclosure, a startup, had to reduce payroll. Notwithstanding all efforts to avoid it, the home had been lost. Now, with a new job and substantial reserves, the client wanted to own again.

Sondhi also discovered the building he hoped to own had an unpermitted third unit. This can also pose problems for many lenders.

Sondhi searched for a lender who would look at compensating factors to outweigh the recent foreclosure. Because his client had substantial reserves, great credit (aside from the foreclosure) and had since taken a position with a stable company, he placed the loan with a lender that granted an exception.

They also accepted the appraisal report, which supported a valuation in line with the agreed upon purchase price while not counting the value of the third unit.

Sondhi and his team closed the transaction within the contractually dictated 30 days.

Jay Sondhi, Guaranteed Rate, (415) 694-5512. jay.sondhi@guaranteedrate.com

Article source: http://www.sfgate.com/realestate/article/Just-Approved-Broker-helps-borrower-overcome-5923203.php

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