If you have a foreclosure in your credit history, a hard money loan may be the best way to begin bouncing back. While your credit scores are important with this type of loan, they aren’t the only factor hard money lenders look at when choosing whether to extend you credit.
Hard money lenders typically lean on the fact that the house will be used as collateral, which means we’re often more likely than a conventional lender to understand that a foreclosure doesn’t necessarily mean you can’t handle credit.
Bank lending is generally very inflexible, and it doesn’t appear that that is going to change anytime soon. If your credit has suffered a major blow within the past several years, a hard money loan may be the perfect solution for you.
Could a Hard Money Loan Help You During Foreclosure?
In some cases, hard money loans are the perfect choice for people who need quick financial solutions. Generally, these types of loans are used by people who cannot wait for cannot qualify for conventional lending. Although real estate investors are the primary hard money borrowers, people who are actually going through foreclosure proceedings may benefit from taking out this type of loan.
A hard money loan may allow a homeowner to get out of foreclosure and give him or her the option of selling the home or securing new financing through a traditional lender.
Are You Facing Foreclosure?
If you are facing foreclosure, or if you have a recent foreclosure in your credit history, a hard money loan may be the appropriate solution for you.