Investment property loans › Investment property foreclosure bailout
Investment Property Foreclosure Bailout
A letter arrived, and now every day on the calendar feels heavier.A bank gives you an answer. As your loan broker, I give you options.
You did not plan for this. A notice of default arrived on a rental you worked hard for, maybe because a tenant stopped paying, a rehab ran long or a loan matured. Now every day on the calendar feels heavier.
I’m Kevin Kermeen. An investment property foreclosure bailout is one of the options I look at for rental and investment property owners in exactly this spot. A foreclosure bailout refinance replaces the loan that is behind with new financing, when the equity and the exit plan support it, and it may help you protect the equity you have built. A pre-foreclosure refinance works best when you call early, while there is still time to compare options from my network of 200+ capital partners. DON’T beg the bank!
7 days a week (Arizona Time)
- 200+capital partners
- $150,000program minimum
- Rentals onlynot your home
- 3 to 5 daysfor term sheets
If a sale date is already set, call me today at (480) 915-8690. The earlier I see the file, the more options there may be. I cannot promise any loan will stop a foreclosure, but I will tell you straight what I see and whether a foreclosure bailout refinance looks possible before your date.
How an Investment Property Foreclosure Bailout Works
An investment property foreclosure bailout is new financing that pays off or brings current a loan that is in default on a rental or investment property.
The basic idea
In a foreclosure bailout refinance, a new loan from a capital partner pays off the delinquent loan, or brings it current, so the property is no longer in default with the old lender. It is usually short-term by design.
After a notice of default
A notice of default is often the first formal step in foreclosure on a rental. It is also the best time to call, because a refinance needs time for valuation, title and payoff figures.
The pre-foreclosure refinance window
The time between the first missed payments and a scheduled sale is the pre-foreclosure window. A pre-foreclosure refinance placed in this window may give you room to stabilize, sell or move into long-term debt.
Equity and the exit plan matter most
For any pre-foreclosure refinance, capital partners look first at how much equity is in the property and how the new loan will be repaid: a sale, a long-term rental refinance or a return to steady rent.
On This Page
Investment Property Foreclosure Bailout Stories You Might Be Living
Every owner who calls me about an investment property foreclosure bailout has lived a version of one of these. If yours sounds familiar, you are not the first, and there may be more options than it feels like right now.
THE TENANT WHO STOPPED PAYING
The rent stopped, and the mortgage did not
You did everything right, and then the tenant stopped paying. The eviction took months while the payments kept coming due. Now the notice of default is sitting on the counter, and you are embarrassed to tell anyone.
What changes when you bring it to me: There is no judgment here. I look at the equity in the rental and the plan to re-tenant it, and I tell you honestly whether a foreclosure bailout refinance looks possible and what it would take.
THE FLIP THAT RAN LONG
The project ran past the loan term
The rehab took longer than anyone planned, the short-term loan matured and the lender is not extending. The property is almost finished, and the clock is louder than the contractors.
What changes when you bring it to me: A pre-foreclosure refinance may buy time to finish, sell or move into a long-term rental loan, if the finished value supports it. I show you the realistic options side by side, including the ones that do not involve new debt.
THE BALLOON NOBODY WOULD EXTEND
The loan came due, and the bank said no
The rental performed for years. Then the balloon came due, the bank declined to renew and the default letters started. You have equity, and it feels like nobody is looking at it.
What changes when you bring it to me: An investment property foreclosure bailout is built around equity and an exit plan, not just a bank checklist. I match your file to capital partners who look at situations like yours and tell you at the start what each one needs.
☂️ Banks hand out umbrellas when the sun is shining, not when you are weathering the storm.
7 days a week (Arizona Time)
Is an Investment Property Foreclosure Bailout the Right Fit?
A bailout may fit when
- The property is a rental or investment property, not your home
- There is real equity in the property
- You have received a notice of default or are behind on payments
- You have an exit plan: a sale, a refinance or steady rent
- You can move quickly on documents
Look at another path when
- The property is your primary residence: see the government resources below
- There is little or no equity in the property
- It is larger commercial real estate: see my commercial foreclosure bailout loans
- You are current and want long-term rental debt: see DSCR loans or buy and hold loans
- You want a loan modification or counseling service
How an Investment Property Foreclosure Bailout Works With Me
One conversation, a straight answer and a broker who stays on your file, because when a date is on the calendar you should not be chasing anyone.
- You call or apply. Call Kevin 7 days a week (Arizona Time) at (480) 915-8690, or start the bailout application. Tell me the value, what is owed, what happened and any sale date.
- I review it honestly. I look at the equity, the payoff, the timeline and your exit plan, and I tell you straight whether an investment property foreclosure bailout looks possible or another path makes more sense.
- I match the file. I take one complete file to the capital partners from my 200+ network whose guidelines fit an investment property foreclosure bailout on distressed rental property.
- You compare term sheets. 3 to 5 days
Expect term sheets in 3 to 5 days, and call me as early as you can, because time matters. I walk you through each one in plain English. - Valuation, title and payoff. For a foreclosure bailout refinance, the property is valued, title is reviewed and the current lender provides payoff figures. I keep the file moving and you informed at every step.
- Close and stabilize. Days, not months
Loans like these close in days, not months, and some loans are approved and funded in 24 to 72 hours on select programs. Timing still depends on the file, so the earlier you call, the better.
7 days a week (Arizona Time)
What You Will Need for a Foreclosure Bailout Refinance
Have these ready and your investment property foreclosure bailout file can go to the right capital partners without anyone asking you twice. Missing something? Call me anyway. Time matters more than a perfect file.
Every bailout file
- Property address, type and number of units
- The most recent mortgage statement on the loan in default
- The notice of default, and any notice of sale with the date
- The reason the loan fell behind, in a few sentences, and what has changed since
- Property photos, inside and out
- LLC or corporation documents, if the property is in an entity
- Last two months of bank statements
- A credit report with scores, and a government ID
The situation and the exit
- A short explanation of what happened
- Your estimate of the property value
- A payoff or reinstatement figure from the current lender, if you have one
- Current leases or rent roll, if the property is rented
- Your exit plan: sale, long-term refinance or re-tenanting
- Other liens or judgments on the property
This program is for investment property only. If the home in default is where you or your family live, it is not a fit, and the government resources below are a better first call.
What Capital Partners Look At on an Investment Property Foreclosure Bailout
Every capital partner has its own box, but most ask the same questions about an investment property foreclosure bailout. Knowing them up front helps you move sooner.
- Equity: the property value compared to everything owed on it
- The payoff: what it takes to pay off or bring the loan current, including fees and arrears
- Timeline: how much time remains after the notice of default and before any scheduled sale
- Exit plan: how the new loan will be repaid
- Property condition: whether it is rentable or sellable as it stands
- Title: other liens, judgments and who owns the property
- Credit and story: what happened and what has changed since
- Location and type: many partners lend only on certain property types and states
A weak spot does not end the conversation, but it does change the options, which is why I review every file before it goes out. If the property is your home, start with USA.gov’s guide to avoiding foreclosure, and for alternatives such as a deed in lieu, see the Consumer Financial Protection Bureau.
Want to see real deals? See my Just Funded deals
Why Owners Use a Broker for a Pre-Foreclosure Refinance
A bank gives you an answer. As your loan broker, I give you options.
When a loan is in default, the bank that holds it is rarely the one offering a way out. I am a nationwide commercial loan broker, and I work for you, not the lender. My job is to know which capital partners look at distressed rental property right now, and to present your file honestly so it gets a fair look while there is still time. DON’T beg the bank!
“Call me before you give up on the property. I will look at the equity and the timeline, tell you straight what I see, and if an investment property foreclosure bailout is not the answer, I will say so.”
A fit if you
- Need $150,000 or more
- Own a rental or investment property in default
- Have equity and an exit plan
- Can move quickly on documents
Not a fit if you
- Need less than $150,000
- Are trying to save your primary residence
- Have little or no equity
- Want a promise about the outcome before anyone sees the file
Other Investor Programs
Every strategy needs a different loan. See all six on my investment property loans page, or jump to the one that fits.
Buy and Hold Loans
Best for: Long-term rentals, one or several under one loan
Duplex, Triplex and Fourplex Loans
Best for: Buying or refinancing a duplex, triplex or fourplex
Larger commercial property in default? See my commercial foreclosure bailout loans. Need short-term money on a property that is not in default? See my bridge loans.
7 days a week (Arizona Time)
Investment Property Foreclosure Bailout FAQ
What is an investment property foreclosure bailout?
It is new financing that pays off or brings current a loan in default on a rental or investment property. It is usually short-term, and it works best when there is real equity and a clear exit plan.
Can a bailout loan stop a foreclosure?
No one can promise that. A foreclosure bailout refinance may help if it closes before the sale and the current lender is paid, but timing, equity and the lender’s process all matter. That is why I ask you to call as early as possible.
I received a notice of default. What should I do?
Read the notice of default carefully, note any dates and call early. A notice of default is often the start of the process, not the end, and the pre-foreclosure window is when the most options may still be open.
What is a pre-foreclosure refinance?
A pre-foreclosure refinance is placed after you fall behind but before a foreclosure sale. It replaces the delinquent loan with new financing, if the property value and your plan support it.
Does this work for my home?
No. This program is for non-owner-occupied rental and investment property only. If the home in default is where you live, see USA.gov’s foreclosure resources or a HUD-approved housing counselor.
What is the minimum loan amount?
My bailout programs start at $150,000. For a smaller situation, call Kevin (480) 915-8690 to discuss your situation, and I will tell you honestly whether I can help.
How long does a foreclosure bailout refinance take?
Expect term sheets in 3 to 5 days. Loans like these close in days, not months, and some loans are approved and funded in 24 to 72 hours on select programs. The valuation, title, payoff figures and your documents set the pace.
Is approval certain if I apply?
No. Every file is subject to credit approval, and rates and terms depend on the property, the equity and your file. What I promise is a personal review and a straight answer.
Ready to Talk About an Investment Property Foreclosure Bailout?
A bank gives you an answer. As your loan broker, I give you options.
Tell me about the property and the date on the calendar. I review every investment property foreclosure bailout file personally, and I will give you a straight answer, even if the answer is a different path. DON’T beg the bank!
☂️ Banks hand out umbrellas when the sun is shining, not when you are weathering the storm.
7 days a week (Arizona Time)
Subject to credit approval. Terms vary. This is not a commitment to lend. Investment property foreclosure bailout financing is for non-owner-occupied investment property only and is not a loan modification, foreclosure counseling or government assistance service. No loan is certain to prevent a foreclosure sale.