Why home owners are in need of second mortgages and hard money financing?
Second mortgages and hard money financing are a short-term loans that help to solve urgent financial problems faced by home owners. A borrower’s home is used as a collateral to secure the second mortgage or hard money required by the borrower. Hard money financing is dealing with short-term”bridge financing”. It is a “distress” loan that helps to tie over an urgent need to resolve a financial problem. The loan amount required as a second mortgage is normally between $30,000 to $150,000. But, in the case of a 1st mortgage financing, the loan amount could be sizable and in excess of $150,000. This type of financing provides 1st mortgage loan to pay off the original mortgage lender who is demanding immediate loan repayment or foreclosure proceedings have already been initiated by the mortgage lender. Stopping Foreclosure Losing a home through foreclosure is financially costly, emotionally stressful and may have a long term effect on a home owner’s credit standing and hamper a borrower fut
