Some Customer called my office Monday afternoon seeking if we can help them salvage their home. They are delayed in their mortgage payments and their house is in foreclosure. They have insignificant credit, in foreclosure and have high debt ratio so banks turned them down. They have kids, they love their house, and they don't want to move anywhere else. Knowing the urgency of the couple's situation, I started asking them questions about their financial situation, what afflicted their credit, how much mortgages they owe, liens, collections, judgments, etc. At the end of our phone call communication, I told the borrower that we can get them a loan through hard money investors. The borrower was startled to hear that they finally can get a loan and avoid losing their home. Applying for a loan through regular banks is subject to limited loan to value, debt ratio, income documentation and credit rating guidelines. For home owners or borrowers who have low credit rating, in notice of default, foreclosure or bankruptcy, they will immediately get declined by banks. Does it mean that they cannot get a loan and lose their home? Absolutely NOT! http://www.hardmoney-list.net
Hard money is short term financing, usually within 6 months to 1 year, although 2 or 3 year terms are also available. The purpose of obtaining a hard money loan is to provide immediate solution to foreclosure or low credit borrower that needs immediate cash to payoff debts or the existing loan has already mature and needs to be paid off. Not all borrowers have good paying ability, which caused the private investors to charge higher rates to prepare for future risks and carry the property through foreclosure and re-sell the property. If refinancing for hard money will not work for homeowners/borrowers who are in notice of default, foreclosure or bankruptcy, there are other creative ways that they can get help from hard money investors. Such creative ways may include a sale contract, lease purchase or the investor going on title and giving time for the homeowner to sell the property.
Hard money is short term financing, usually within 6 months to 1 year, although 2 or 3 year terms are also available. The purpose of obtaining a hard money loan is to provide immediate solution to foreclosure or low credit borrower that needs immediate cash to payoff debts or the existing loan has already mature and needs to be paid off. Not all borrowers have good paying ability, which caused the private investors to charge higher rates to prepare for future risks and carry the property through foreclosure and re-sell the property. If refinancing for hard money will not work for homeowners/borrowers who are in notice of default, foreclosure or bankruptcy, there are other creative ways that they can get help from hard money investors. Such creative ways may include a sale contract, lease purchase or the investor going on title and giving time for the homeowner to sell the property.
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