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Foreclosure Loans

Montegra is ready, willing and able to consider loans on properties that are in foreclosure when a borrower needs to refinance their loan. The primary underwriting guide line we use to evaluate these requests is the loan to value ratio between the amount of the loan request and the value of the collateral property.

We recently funded a foreclosure loan to a local land developer who had completed two thirds of a mixed use development but still owned an undeveloped parcel of land adjacent to the buildings it had completed. The construction lender claimed the developer had violated part of its due on sale clause and commenced foreclosure. The developer fought this foreclosure in court and lost.

Although the developer had good relations with their bank, the bank would not consider a request to pay off a loan on a property in foreclosure. Montegra was able to close a loan for the developer with great speed which allowed it to get a significant discount from the foreclosing lender on the delinquent interest and legal fees. By refinancing their property with Montegra the developers saved over $90,000 in additional interest and cost.

Each loan application for a property in foreclosure is evaluated on its own merits and they are never rejected out of hand because of their current difficulties with their existing lender.

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