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

Whittier Law Group > Hard Money Loan  > Hard-Money Loans…The Devil Is In the Details.

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, public service reasons, however…no, they are in it to make money and quickly; often stealing property through foreclosure if possible.

Securing private loan equity can frequently be a buyers only true recourse, but it is the terms of the loan, the devil’s details, wherein lies the danger.

If you currently are having issues with a hard-money lender regarding the amount of interest being charged on your loan, late fees, or threats of foreclosure, please comment below and share your experiences.

To learn more about how to avoid common pit falls in hard-money loans, and what to do if you find yourself in danger of losing your property to a hard-money lender, visit the Whittier Law Group website at www.whittierlaw.international/the-hard-money-loan.

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