Foreclosures are infiltrating nearly every housing market in the country, displacing thousands of families, and leaving empty shells where bustling neighborhoods used to exist. What’s interesting is that many feel that the bank “wants” to foreclose, but in reality, they simply don’t have a choice. The sub-prime lending practices seen over the last 15 years have taken a toll on the economy, and banks simply don’t have the inclination, or the capital, to continue lending to those interested in acquiring these properties. Investors continue to search for new ways to finance purchases, however, and these practices can be beneficial to those that want to avoid foreclosure. Commercial hard money loans are providing families across the nation with the relief necessary to retain their property, avoid displacing their children, and of course, the ability to catch back up financially.
Buying Time
One commodity that we simply can’t afford, regardless of how much money one has, is time. And, in many foreclosure cases, it isn’t an issue of money, but instead, an issue of not having the money in time. A homeowner can contact a commercial hard money lender, borrow up to 65% of their property’s value, and avoid foreclosure by getting the time necessary to organize finances and get back on their feet. It’s a trend that has banks concerned, as they realize that they are losing their lending clout to private investors.
Where to Look?
There are hundreds of commercial hard money firms popping up across the country. By relying on private investors, these organizations can help pair those with investment capital with those that need it, circumventing the lending industry entirely. While the interest rates are higher than the average bank, the closing process is minute, and the money is often available immediately.
Commercial hard money loans are an integral part of avoiding foreclosure for many. Due to the seemingly "uncaring” approach taken by banks, there aren’t many places to turn once the foreclosure letters begin showing up in the mail. The language they use is often harsh, and believe it or not, they are intentionally written to intimidate the home owner. Once these letters begin, the resident is faced with a choice: turn the property over to the bank or buy some time.
Using commercial hard money lenders isn’t perfect for everyone’s unique situation, but how many lending options truly are? There are millions of homes currently in foreclosure, with more expected in the coming years. If you are currently enduring economic strife and need to keep the bank from initiating the foreclosure process, it may be time to contact a commercial hard money group. These private firms can help you access the capital you need to hold the bank off. With that time, you can prepare the home for sale, retaining your equity in the property, and keeping your family’s home life safe and secure. Banks are not lending as the used to, which is why it’s time to begin borrowing from the private sector.
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