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Hard Money: Private Foreclosure Loans
from:Private foreclosure loans are given out by private lenders to individuals who are in need of a foreclosure bailout loan or who might want to finance a home purchase without proper credit. If you are looking for private foreclosure loans, you might want to ask your bank or lender if they know of any “hard money” lenders. That's how they are referred to in the banking industry. The reason they are called hard money lenders is because the terms and conditions by which one obtains money from such lenders is much harder than other types of loans. Soft money, on the other hand has fewer strict conditions and more favorable terms to the borrowers.
Rates Are Higher
Hard money lenders usually charge between 12 to 20% interest, annually. This is on top of four to five origination points to close the loan, sometimes even 10 points. Since a point is 1% of the full loan amount, you are looking at some hefty upfront fees to get your hard money loan. So, why would anyone consider private foreclosure loans? There are a variety of reasons. They may not have stellar credit. They may have exhausted all other avenues of soft money. Or, they may be close to foreclosure and this is their last resort. Another reason people use private foreclosure loans is when they are investing in fixer-uppers and need capital to do the repairs. If the after market value once repairs are done is expected to be far higher, they can finance the repairs through hard money loans and thus, use none of their own capital to get the work done.
How Private Foreclosure Loans Work
Once a hard money lender agrees to do private foreclosure loans for a customer, they will have to pay the points and agree to the strict terms of the loan. This can help the borrower buy time to sell the house and recoup some equity or stave off foreclosure proceedings. They will typically only do deals for private foreclosure loans with a loan to value ratio between 65 and 75%. So, if you are upside-down on the mortgage and the value of the home can't support a loan, it won't qualify for a hard money loan either. If, however, your market value hasn't slid too much, you can use the loan to finance time to sell the house and recoup your equity. In comparison, if you go into foreclosure, you will lose all your equity, so paying significant fees to become current on the loan can pay off in the end. The lender does make a lot of money on these types of loans, but they also are free to give the money based on their conditions and risk assessment.
Mortgage Loans With Foreclosure News
USDA Is a Tough Collector When Mortgages Go Bad - Wall Street Journal
 Wall Street Journal | USDA Is a Tough Collector When Mortgages Go Bad Wall Street Journal Under a $25 billion settlement over questionable foreclosure practices announced in February, five large banks agreed to slash loan balances and forgive the debt of borrowers who lost homes to foreclosure. USDA Rural Housing Administrator Tammye ... React & Act: What is second-mortgage debt? |
Speeding Up Short Sales - New York Times
 New York Times | Speeding Up Short Sales New York Times Distressed homeowners often prefer them to a foreclosure, he noted. Expedited sales as a result of the new directive will benefit the entire housing market, said Michael McHugh, the president and chief executive of Continental Home Loans and the ... Mortgage Relief – Without the Catch US 30-year mortgages hit record low BofA Repurchases $330M from Freddie; Delinquencies Down, Sales... |
Calif. homeowners with foreclosed second mortgages targeted by firm - News10.net
 abc7news.com | Calif. homeowners with foreclosed second mortgages targeted by firm News10.net Heritage Pacific launched its effort in late 2008 when it began buying - at a steep discount - second-mortgage loans that borrowers had stopped paying. Many of the loans were secured by houses that already had been sold in foreclosure by first-mortgage ... Firm targets CA homeowners with foreclosed 2nd mortgages |
Foreclosure-Prevention Efforts Bog Down - LoanSafe
 Arizona Capitol Times | Foreclosure-Prevention Efforts Bog Down LoanSafe A rare legislative conference committee called to rescue a pair of stalled foreclosure-prevention bills is bogged down in marathon sessions. Meanwhile, Gov. Jerry Brown is pushing to use some of California's share of the $25 billion national mortgage ... Should States Be Chided for How They Use Their Mortgage Settlement Money? Mortgage settlement money diverted to boost state budget Lawsuit seeks to stop Legislature from raiding mortgage fraud settlement |
Frustrated borrowers seeking mortgage help - MarketWatch
Frustrated borrowers seeking mortgage help MarketWatch At the time, it was not quite underwater, but there was no money to pay the mortgage. I tried to contact the lender to turn over the property, giving the company the deed to the property in lieu of an eventual foreclosure because there was no money to ... |
Foreclosures, House Sales Up in April - LoanSafe
Foreclosures, House Sales Up in April LoanSafe In a short sale, a lender accepts an offer that is less than what the borrower owes on the mortgage. –In April, there were 156 foreclosures in Montgomery County; 42 in Washington County and three in Carroll County, according to RealtyTrac. |
Despite Home Value Gains, Underwater Homeowners Owe $1.2 Trillion More than ... - MarketWatch (press release)
 Los Angeles Times | Despite Home Value Gains, Underwater Homeowners Owe $1.2 Trillion More than ... MarketWatch (press release) That is nearly one-third (31.4 percent) of US homeowners with mortgages, compared to 31.1 percent in the fourth quarter of 2011. - Foreclosure is not imminent for most underwater homeowners. Nine out of 10 continue to make their mortgage and home loan ... Most Underwater Homeowners Still Paying Mortgages Zillow: 31.4% of US homeowners are underwater on mortgages Percentage of underwater homeowners still growing |
Hawaii Woman Sentenced in Foreclosure Rescue Scam Involving Approximately 80 ... - LoanSafe
Hawaii Woman Sentenced in Foreclosure Rescue Scam Involving Approximately 80 ... LoanSafe LOUIS, MO—Marien Brown was sentenced to 18 months in prison and ordered to pay approximately $250000 restitution for falsely representing that she operated a “mortgage rescue” or “foreclosure rescue” service. According to court documents, Marien Brown ... |