If you find yourself in the position of being foreclosed on by the bank, you may feel the situation is hopeless. However, with alternative funding solutions provided by Texas hard money lenders, you may be able to delay foreclosure long enough to sell your property and keep your credit score intact.
While not the death sentence that it used to be, a foreclosure is still a major red mark on your credit history. Having a foreclosure can make it difficult to purchase a new home and cause lots of other credit related problems. Foreclosure can happen for a number of reasons. The loss of a job, divorce, or simply needing to move for work or family obligations. In many cases, the borrowers being foreclosed on are otherwise credit worthy and pay back their financial obligations.
If you find yourself getting behind on your mortgage payments for any reason, it is possible to delay or avoid foreclosure altogether with Texas hard money lenders and hard money loans. Hard money loans are cash loans that would be backed by the value in your home. You can use the money to make mortgage payments while you buy yourself extra time to sell your house, rather than have the bank foreclose on it.
In order to get a hard money loan, you need to first contact Texas hard money lenders. A lender will look over the value of your home compared to what you owe and help you get a cash loan based on this number. The great news here is that Texas hard money lenders don’t evaluate your credit score, so a few late payments won’t make a difference. Once you have the cash in hand, you can use it to help delay the foreclosure process and put your home on the market. You can also opt for an interest only loan, meaning that you only pay interest on the loan for a set term which gives you more money in your pocket instead of it all going out in monthly payments.
Keep in mind that your hard money loan will have a higher interest rate than most home loans. However, if you price your home to sell and use some of the funds to fix and major issues, your home should sell quickly, allowing you to pay back your loan to the bank as well as to your Texas hard money lenders. The faster you can pay the loan back, the less interest you will pay in the long run.
While taking out an additional loan is not always ideal, it may be your only option if you want to avoid the bank foreclosing on your property. Contact a hard money lender to determine if a hard money bridge loan is a good option for you.
Dennis Dahlberg Broker/RI/CEO/MLO
111 Congress Ave |Austin | Texas | 78701
Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.