Nothing is guaranteed in an unstable economy. Sometimes it seems even after working endless hours there still isn't enough resources to meet all your needs. With an immediate need for cash, the homeowner's best option is hard money loans. A hard money loan allows a homeowner to use their home as collateral in exchange for cash.
Individuals who would not qualify for a traditional loan are candidates for this type of loan. Offered by private hard money lenders, a typical repayment period lasts from several months to several years. The repayment period depends on the loan value. Although there is not a restriction on how homeowners may use the loan, most applicants will use it to pay mortgage arrears or stop a current foreclosure.
Because the borrower is a high risk, the maximum value on the home is limited to 70% of the home's quick sale value. A homeowner may receive less at the loan provider's discretion. The quick sale value is the amount each lender will receive if the borrower defaults and the home is sold within 1 to 4 months.
After defaulting on the loan, lenders have the right to legally repossess the home and sell it at a foreclosure auction. The home is priced to recover the remaining loan balance plus any other fees. Lenders who are a first lien holder will receive payment first after the home is sold. Junior lien holders receive payment after the other creditors.
When a borrower cannot repay the financed amount plus interest, the lender will foreclose on the property. Each lender will first attempt to recover the cost of the loan at an auction. Usually, the opening bid on the home is higher the value of the home. Homes that remain unsold at a foreclosure auction are added to the lender's REO properties for sale. Although the home is owed by the lender, it does not have a direct relation to the business's functions.
Like most fast cash loans, this type of lending is not regulated by the federal government or the state. However in an attempt to prevent lenders from charging too much interest, each state does have a usury law against inflated interest rates. Many repayment rates start at 11.5% and is changed at the lender's discretion.
These loans are not limited to residential properties; most lenders will invest in commercial property. These loans are more expensive than traditional hard money loans because of the increase risk involved with investment properties. In certain cases, the lender will invest in properties that are not occupied by the lender. Because of its nature, a commercial hard money lender will have a large deposit on reserve to protect their interest in case the borrower defaults.
Individuals who would not qualify for a traditional loan are candidates for this type of loan. Offered by private hard money lenders, a typical repayment period lasts from several months to several years. The repayment period depends on the loan value. Although there is not a restriction on how homeowners may use the loan, most applicants will use it to pay mortgage arrears or stop a current foreclosure.
Because the borrower is a high risk, the maximum value on the home is limited to 70% of the home's quick sale value. A homeowner may receive less at the loan provider's discretion. The quick sale value is the amount each lender will receive if the borrower defaults and the home is sold within 1 to 4 months.
After defaulting on the loan, lenders have the right to legally repossess the home and sell it at a foreclosure auction. The home is priced to recover the remaining loan balance plus any other fees. Lenders who are a first lien holder will receive payment first after the home is sold. Junior lien holders receive payment after the other creditors.
When a borrower cannot repay the financed amount plus interest, the lender will foreclose on the property. Each lender will first attempt to recover the cost of the loan at an auction. Usually, the opening bid on the home is higher the value of the home. Homes that remain unsold at a foreclosure auction are added to the lender's REO properties for sale. Although the home is owed by the lender, it does not have a direct relation to the business's functions.
Like most fast cash loans, this type of lending is not regulated by the federal government or the state. However in an attempt to prevent lenders from charging too much interest, each state does have a usury law against inflated interest rates. Many repayment rates start at 11.5% and is changed at the lender's discretion.
These loans are not limited to residential properties; most lenders will invest in commercial property. These loans are more expensive than traditional hard money loans because of the increase risk involved with investment properties. In certain cases, the lender will invest in properties that are not occupied by the lender. Because of its nature, a commercial hard money lender will have a large deposit on reserve to protect their interest in case the borrower defaults.
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Pacific Mortgage Fund offers excellent hard money loans. You also will find REO properties for sale when you visit us on the Web today.
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