Hard Money Loan to Stop Foreclosure Immediately

Author: Hector Milla

Author: Hector Milla

Hard money loans are specialty loan products, only taken on by investors who are willing to invest in high risk loans. The loan to value ratios are low, the interest rates are higher, the points or fees are typically much larger than other mortgage loans, and these types of loans are often due and payable sooner. Natalia Osorio Editor of the "Loan Modification Foreclosure" website -- http://www.LoanModificationForeclosures.com -- pointed out; The financing criteria for a hard money loan is often based exclusively on the value of the collateral which is the property being financed, and no or very little consideration is given to a borrower's credit. This means that even a person in foreclosure whose credit and credit score has severely declined can qualify for this type of loan if there is a sufficient amount of equity in their property that reduces the investor's risk. The loan to value is 65% or less. This means that if your home has a value of $350,000, the maximum loan amount would be $227,500 which is 65% of $350,000. Hard money lenders really prefer making loans on properties with a loan to value of 50% or less Interest rates on hard money loan to stop foreclosure immediately will be substantially higher than other mortgage loans, often 12% or even greater. Often they are interest only loans so that none of the payments apply to the principle. In addition, a hard money loan will charge the borrower the maximum amount of points allowed under mortgage law regulations. So expect to pay at least six points or six percent of the loan amount to acquire this financing. Usually the six points plus all other closing costs are included in the total amount of the loan, so you will need some wiggle room in the value of your collateral to cover the loan closing costs as well. These loans are often amortized over 30 years, but are due and payable within eighteen months to five years. In addition, if you own other property, you are an especially good candidate for a hard money loan to stop foreclosure immediately because these lenders are open to cross collateralizing your other property. This means that other properties of yours would be encumbered in the hard money loan as well N. Osorio added. Because of the small number of qualifying features, as well as the independent nature of these investors, hard money loans can close very quickly and can be excellent to stop a foreclosure. Further information about how to get professional assistance with a mortgage loan modification by http://www.LoanModificationForeclosures.comAbout the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

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