ASSIGNMENT:

Always happy when a past client returns to ALB to refinance their loan. In this case the fixed period of their current loan had burned off and the rate was set to roll to an adjustable rate mortgage and with a big rate increase. Therefore, the assignment was to get locked into a new fixed term at a competitive rate.

CHALLENGE:

As we got started in the loan process we learned that the borrower's current insurance carrier had notified them that they would be unable to insure them any longer because of the obsolete electric panels in the building.  We have seen this a lot over the past couple years. Certain Manufacture/Brands on Electric panels have made it impossible to get property insurance. The only way around this was to upgrade the electric panels in the entire building. This is what the borrower had to do here and as a result it kind of slowed the process. Last, hurdle was in how the borrower had been reporting the rental income on their tax returns.

SOLUTION:

It turned out that it made most sense for us to negotiate favorable loan terms for the borrower with the current lender. Other lenders were having difficulty in how their rental income had been reported in tax filings, but the current lender was content and enthusiastic about keeping the loan in their portfolio. We also negotiated a more favorable prepay period in efforts for the applicant to have more flexibility in the event rates go down in the near future.