Protections Against The Dangers Of The Hard Money Loan

The Whittier Law Group (WLG) uniquely focuses on representing individuals and families who fall victim to predatory lending practices by “hard money” real estate lenders. These lenders, although operating legally within the realm of short-term, high-interest loans, often attempt to sidestep the robust consumer protections afforded to residential borrowers, to maximize their profits, including seizing properties in foreclosure.

One of the ways they do this is through the deceptive practice of falsely characterizing residential real estate loans as commercial transactions in the loan closing documents. This misrepresentation is a deliberate attempt to evade federal consumer protection laws, such as the Truth in Lending Act (TILA); the Real Estate Settlement Procedures Act (RESPA); and the Deceptive Trade Practices Act (DTPA), as well as similar state laws which provide significant consumer safeguards against abusive lending practices.

Hard money lenders will also prey on borrowers seeking financing for commercial real estate buys and builds. Here, the hard money lenders tactics include: delays in staged funding (draws) toward a building under a construction loan, or escalating interest rates by triggering bogus “default events,” or by relying upon other terms of the loan contract that are grossly unfair and voidable under law the hard money lender can often put a borrower in a position where foreclosure on their property is imminent. In such cases, only swift legal action can protect a property owner’s rights.

Our attorneys are dedicated to uncovering and litigating against such fraudulent actions by hard money real estate lenders. They meticulously scrutinize loan documents for evidence of this kind of misconduct, aimed at holding lenders accountable for their actions, preserving our clients property rights, and collecting damages whenever possible.

This effort encompasses a wide range of legal services which we provide including: advising clients on their rights under consumer protection laws, investigating the nature of the loan and the lender’s practices, negotiating with lenders to seek resolution, and, when necessary, pursuing litigation to remedy the wrongs done to borrowers; which may involve actions to rescind the loan based on fraud, recover damages for any illegal practices, or other remedies aimed at correcting lending abuses and providing relief to the affected borrowers.

In this effort, the WLG employs on its client’s behalf a detailed understanding of both residential and commercial real estate law, as well as the intricacies of consumer protection statutes. By challenging the hard money lender’s deceptive practices, our lawyers work not only to secure justice for our clients but also to enforce the application of residential lending laws designed to protect consumers.

If you have been victimized by a hard money lender, we can help you.

• Never let a hard money lender pressure you into a loan on terms you don’t understand and without the advice of an attorney.
• Speak to an attorney before you sign anything.
• Get an attorney’s advice on whether the terms of the loan will actually be affordable and not usurious.
• Make sure that the real estate you bargained for has been properly assessed for present value, short to medium term future value, and tax liabilities.