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Monday, 2-Dec-2013 23:13 Email | Share | Bookmark
Some `low-doc` Loans Are Causing Problems

Jane Lehman, Real Estate News Service. WASHINGTON Uncharacteristically high mortgage losses are prompting many lenders to stop offering mortgages granted on little more than a borrower`s say-so and the projected resale value of the home. The mortgages, referred to in the industry as ``no-doc`` and ``low-doc`` loans, are made without benefit of the customary documentation of a borrower`s income, employment and source of down payment funds. Rather, lenders gambled that a healthy down payment on the order of 25 percent would prevent borrowers from defaulting on the loans. The only paperwork required was a property appraisal, credit report and a signed statement by the borrower attesting to income, employment history and other information reported on the application form. When the low-doc loan made its nationwide debut in 1987, lenders touted it as a means of speeding the loan origination process and providing quick approvals for self-employed and high net-worth borrowers whose complex tax returns complicate the loan application process. <br>For the original version including any supplementary images or video, visit

No-doc, Low-doc Loans May Help People Who Lack Steady Job, Income

Marc Greene of JEG Properties said the sales price will be $325 per square foot and the lease rate will be $21 per square foot, taxes, insurance and utilities not included. Despite rising interest rates, Greene said it still makes sense to buy. "I just helped a chiropractor, who has been renting for the last six years and paying $3,000 a month, to buy a $400,000 unit in another building," Greene said. "His mortgage will be the same as what he was paying in rent, but in 15 years he'll have an asset worth $650,000." Insurance salesman touting 'low-doc' commercial loans September 11, 2006 4:20 AM Joseph Bailey is convinced that loaning money against commercial real estate is the best business opportunity going right now.The career insurance salesman went to a loans for small business Perth seminar held by Austin, Texas-based Great America Funding this summer, and returned to Sarasota with the conviction that he needs to devote all his time to help businesses get the money they need without having to deal with bank bureaucracies."We can make a loan for any commercial reason that makes sense," said Bailey, who has run his own insurance agency in Sarasota since 1974. "Forget about three years of tax returns and groveling for financial statements. If you have equity in a building, that's all we need."Bailey says Great America Funding was founded two years ago by R.C. McVaney. It has been growing at lightning speed and already operates in 50 states.But no major newspapers have written anything about the company yet, and if you type Great America Funding or McVaney's name into into Google or Yahoo! search engines, nothing comes up except for the company's own Web site: America Funding says its goal is to provide businesses and commercial property owners with loans under favorable rates and terms that will actually do them good."Our loans can be for business acquisitions, expansions, property purchases or refinances, equipment leasing, factoring or virtually any business purpose," the Web site states. "We have some loan programs that require NO income documentation or verification."Bailey agreed that the drawback of no document loans is that interest rates attached to them can be much higher than traditional bank loans."I don't want you to think that we're bottom-feeders, that we will take anything that banks throw in the wastebasket," Bailey said. "People still have to qualify. <br>For the original version including any supplementary images or video, visit

Low-doc loan battle goes before High Court

Under Privacy select 'Content settings' Under 'Cookies' select 'Allow local data to be set (recommended)' Click 'OK' Under 'Block cookies' check 'Never' Enabling Cookies in Mobile Safari (iPhone, iPad) Go to the Home screen by pressing the Home button or by unlocking your phone/iPad Select the Settings icon. Select Safari from the settings menu. Select 'accept cookies' from the safari menu. Select 'from visited' from the accept cookies menu. Press the home button to return the the iPhone home screen. Select the Safari icon to return to Safari. <br>For the original version including any supplementary images or video, visit

Insurance salesman touting 'low-doc' commercial loans

Each lender has his or her programs. Borrowers might not have to show W2 forms, but might have to produce income-tax filings for the past three years. If they are self-employed, they might have to prepare year-to-date statements that include accounts receivable. They might also need to show bank balances, brokerage reports, a list of assets and so on. Some lenders will do a "stated-income loan. The borrowers just state how much they make and the lender accepts it," he says. All the other paperwork has to be in order, however. The borrower's credit history has to show that he or she is a good risk. <br>For the original version including any supplementary images or video, visit

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