Hard money lenders provide borrowers with loans that are backed by some form of real estate. Here, the borrower may put up their property interest in a home or commercial property as collateral for the loan. These loans are often called “bridge loans.”
Loans obtained from a hard money lender often have the following characteristics:
While hard money lenders may not always require an exhaustive check for approval, they are required by law to verify “ability to repay.” That is, they will usually be required to verify income documentation from the borrower.
Hard money lending can often be associated with specific legal issues. These include:
Legal disputes over a hard money lending contract can often require a lawsuit. These may be remedied through a damages award that will help the non-breaching party be compensated for losses. In some serious cases, criminal charges may sometimes be involved, especially for cases involving fraud, deception of a government official, or other criminal issues.
Hard money loans can often help a person obtain funds in a short amount of time, with less verification requirements. However, they are also associated with certain risks and penalties. You may need to hire a qualified attorney if you need help with a hard money loan. Your lawyer can help you research your financing options, and can also represent you if you need to file a lawsuit with the court.
Last Modified: 12-08-2014 09:01 AM PSTLaw Library Disclaimer
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