Aug 20 2009
Do You Know A Hard Money Lender?
6. Foreclosure Bail Out Loan – Is a new loan where the defaulted mortgage is paid off. This is usually a hard money mortgage and it is common for interest rates to approach 10-15%. Points can be as high as 5 and terms are usually short. In the 5 year range where a balloon payment will be due for the remaining balance. In order to qualify you must have sufficient equity. Hard money lenders are looking for 65-75% max loan to value and a decent equity cushion. You also have to have ability to repay as in a traditional mortgage.
Hard money lenders are more difficult to find in such an unstable market, but they still exist. While a foreclosure bail out loan may not be a permanent solution, it can definitely buy you enough time for your economic situation to change or for the housing market to recover just enough for you to sell your house and pay off the loan. Learn more about how to avoid foreclosure at www.ForeclosureDefenseSecrets.com.
