Avoiding Foreclosure with Hard Money Loans

If you have enough equity in your home, then Arizona Hard Money Loans could be a good short-term option to avoid foreclosure. But understanding these loans is critical to your success.

Arizona Hard Money Loans are short-term loans which are based on the value of the property being purchased rather than the borrower’s credit score. These asset-based loans offer a solution for borrowers with a poor credit score as well as those with no credit history. But in some cases, these loans are a good short-term option for a homeowner who is experiencing financial issues and it trying to avoid a foreclosure.

Many things can happen that make it difficult for a homeowner to make mortgage payments. Sometimes there is the loss of a job or others it could be due to an illness or even the death of one of the owners. But until the homeowner is back on his or her feet, making a mortgage payment can be very difficult. And when this occurs suddenly, there might not be time to seek a home equity line of credit or a traditional second mortgage. Arizona Hard Money Loans can be a fast solution to allow the homeowner to make mortgage payments while sorting out the financial issues.

The key to making this method work is to work very diligently at securing other financing at a lower rate once you are no longer at risk of a foreclosure. The high-interest rate of Arizona Hard Money Loans can quickly drain any resources that the homeowner might have. Some of the alternative options include getting a home equity loan, a home equity line of credit, acquiring a second mortgage or refinancing the entire home to pay off the short-term loan and substantially lower the monthly payments.

Fees to Expect

When you are researching a short-term loan to avoid foreclosure, you can expect to pay an appraisal fee, points on the loan and an interest rate between 10% and 15% over the life of the loan. If your lender does not charge points, then you should ask for a complete list of fees that are associated with the loan. Obtaining this list in writing can help to avoid surprise fees during the loan closing or as you approach the signing. If you are comparing several lenders, this list will also allow you to compare the total loan cost from each lender to select the loan that offers the best overall rate.

Make a Smart Choice

If you have suffered a sudden financial issue and you have equity in your home, then a short term hard money loan could be a solution to avoid foreclosure. You will need to be very careful to be certain that you completely understand your responsibilities as a borrower and the total cost of each loan option. This is certainly not a long-term option, but it will help to bridge a short-term issue and can help to avoid the additional issues associated with a foreclosure on your home.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.