Hard Money Lenders

admin — Sat, 17 Jul 2010 18:06:53 +0000

America is going through tough financial times; it is no secret that many Americans have fallen victim to unscrupulous lending practices and that the most important terms and conditions were not disclosed during the negotiation of a home loan. We are going through a financial bubble and because of reforms to lending practices home owners are desperate because they no longer qualify for readjustments with their current lender.

As the saying goes, desperate times call for desperate measures but, that measures that most people are taking are definitely not the best ones. A few years ago property owners counted with their home equity to bail them out of any financial problem but because of the current situation properties have partially lost value and there might not be enough equity to refinance a loan; unfortunately for home and property owners, credit card companies know that the average American no longer counts with equity in their properties so they are constantly bombarding people with ephemeral offers which later on turn into enormous headaches.

But the solution to a tight financial situation is not to turn to credit cards because their interest rate can go as high as 30% (compounded daily) and they will just add to the problem. Hard money loans on the other hand, are better financial instruments which provide affordable interest rates and terms that will help any property owner sail through this economic recession.

Hard money loans can go as high as 70% LTV (loan-to-value) but, the best case scenario would be to keep the LTV below 65% in non-owner occupied homes, hard money loans can also be issued on an owner occupied property to relieve financial stress. These types of loans can be amortized over a period of 30 years according to the borrower needs

Stopping Foreclosures with Hard Money Loans

Because of the banking crisis more and more home owners are losing their properties to foreclosure, the sad part is that many of those foreclosures can be stopped or avoided only if the note holder deals with a knowledgeable hard money lender. In California alone foreclosures have been up 260%, this figure is based on market analysis performed on July, 2008 by housing authorities.

Hard money loans can be used in order to salvage a property and avoid foreclosure. However, a property owner needs to act as fast as possible in order to avoid interest and penalties from accruing and worsening the situation.

The Advantages and Disadvantages of Getting Mortgage Lender Vs Mortgage Broker

admin — Wed, 10 Mar 2010 01:08:31 +0000

f the downfall of the US economy, the mortgage industry has become more rampant on the news. You can always hear something regarding foreclosures, mortgage industry, refinances, loan modifications and a lot more almost each night. And because of this, you will need to make a wise decision if you are planning to get a home loan. One of the most important decisions you have to make is to choose between a mortgage lender vs a mortgage broker. There are many people who prefer one over the other. But what can you get from each? The disadvantages and advantages of each of these options will be discussed in this article.

There are several reasons why most loans are being started by mortgage brokers nowadays. But the biggest reason is because the brokers are able to look around in order to give the consumer the best home loan available with the best lender as well. Since they are familiar with the different lenders, they can easily get the loan of the consumer to whatever lender that has the best service and interest rates. Aside from this, they are also aware that there are some areas wherein certain lenders are more strict on as compared to others. Because of this, consumers will benefit from the expertise of the broker in the end.

However, a disadvantage of choosing a broker over the lender is because there are some which are not good with the job. Aside from submitting your loan to a wrong lender, they will only waste your valuable time. Because of this, it is important for the consumer to really find a good and a trustworthy broker which is knowledgeable in the different products that are also offered by various lenders.

On the other hand, if you go directly to a lender, you will have a benefit of having your loan directly worked on by the underwriter which is the partner of your loan officer. Since the loan officer acts as a salesperson for just one mortgage company, he will be knowledgeable of the products more than the broker. This is because brokers are working for different lenders while the officer is handled by only one. Because of this, consumers can get the advantage of knowing directly the issues involved once they apply for a loan.

However, direct lenders can only provide the consumer just one set of products. If the consumer is not qualified for the products presented to him, then he might need to go elsewhere and find another mortgage lender. This can waste the valuable time of the consumer. But if the mortgage lender will pre-approve the consumer, then there is a good probability that the consumer will chose the loan which is offered by the lender.

Either option works just fine. Whether you choose a mortgage lender vs mortgage brokers, the end product will still require you to have a good lender and a good broker. This is because if you don’t, your time is wasted.

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Hard Money Lenders

The Advantages and Disadvantages of Getting Mortgage Lender Vs Mortgage Broker