Hard Money Lenders: Can They Fund a Short Sale?
At LBC Capital, we understand that homeowners facing a short sale often feel overwhelmed and unsure of their options. One question that frequently comes up is whether a hard money lender can fund a short sale. In this article, we’ll explore this question in depth and provide you with the information you need to make an informed decision.
What is a Short Sale?
A short sale occurs when a homeowner owes more on their mortgage than the home is worth and is unable to continue making payments. The homeowner may work with their lender to sell the home for less than what is owed on the mortgage, which is called a short sale. While this can be a challenging process, it can be a good option for homeowners who want to avoid foreclosure.
What is a Hard Money Loan?
A hard money loan is a type of loan that is secured by real estate. Unlike traditional loans, which are based on a borrower’s creditworthiness, hard money loans are based on the value of the property being used as collateral. These loans are typically used by real estate investors who need quick access to cash and cannot obtain a traditional loan.
Can a Hard Money Lender Fund a Short Sale?
The answer is yes, a hard money lender can fund a short sale. However, it’s important to note that not all hard money lenders will fund a short sale. Each lender has their own lending criteria and may have different requirements for short sales.
At LBC Capital, we understand that each situation is unique and we work with our clients to find the best solution for their specific needs. We have experience funding short sales and can help you navigate the process.
Why Consider a Hard Money Loan for a Short Sale?
There are several reasons why a homeowner may consider a hard money loan for a short sale. First, hard money loans can often be obtained quickly, which can be important when time is of the essence in a short sale situation. Additionally, hard money lenders may be more flexible in their lending criteria, which can make it easier to obtain a loan.
How to Choose a Hard Money Lender for a Short Sale
When choosing a hard money lender for a short sale, it’s important to do your research and choose a lender who has experience funding short sales. You should also consider the lender’s lending criteria and fees, as these can vary widely from lender to lender.
At LBC Capital, we pride ourselves on our transparency and our commitment to providing our clients with the best possible service. We have experience funding short sales and can help you navigate the process from start to finish.
If you’re facing a short sale and are considering a hard money loan, it’s important to work with a lender who has experience funding short sales. We have the expertise and commitment to help you navigate this challenging process. Contact us today to learn more about how we can help you.