Hard-Money Loans…The Devil Is In the Details.

Despite legislation enacted since the subprime mortgage meltdown of 2008-2010 (e.g., RESPA, HOEPA and TILA, coupled with the diligent efforts of the Consumer Financial Protection Bureau, nonetheless, a new mortgage loan predator has surfaced and is prowling the U.S. real estate marketplace.  This predator is the private finance, or “hard-money” lender. As the banks, and other more conventional lenders have vacated the home and commercial real estate lending arena, the hard-money lender has stepped in, offering interest only loans to borrowers that find it increasingly difficult to fund new construction, or secure mortgage finance. These lenders are not offering money for altruistic,...

Continue reading