 itsdk7
Joined: 05 Nov 2009
Posts: 2
2.00 Dollars($)
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 Posted: Thu Nov 05, 2009 3:50 pm Post subject: How do I locate a reputable Hard Money lender? |
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I came across this forum a few minutes ago, and decided to get some help to my problems.
I have looked up hundreds of “hard money” lenders in California statewide and in Los Angeles California, however none of them seem to have a Better Business Bureau report. So I have no way of knowing if these companies are legit or shady or are a fly by night company. How do I locate a good and reputable Hard Money lender company in todays market . . . Especially with todays changes with consumer loans and credit . . . With special regards to how things have changed since the subprime mess over the past two years.
In my case, I want to pay off about 100K in revolving credit debt, since my interest rates have all been raised to between 20% to 29.99% over the past several months. I am self employed, and my travel business has taken a catastrophic hit due to the economy over the past 2 years. I currently have a mortgage that I am current with, yet with the subprime fiasco and revolving credit interest rates steadily going up, I can no longer keep up, yet I do not want to file for bankruptcy or do one of those debt reduction plans (since one of those plans will crucify my credit report as bad as a bankruptcy will) since my credit is good (a FICO score of 733), and I figure I have over 150K in non-mortgage equity currently in my house.
Yesterday, I talked with my previous lender (who later sold my mortgage to another company), and he said that a hard money loan would be good in my case (to try to pay off all/most of my revolving credit). Even the many changes in the financial lending industry over the past 2 years, my previous lender felt confident that there is at least a few reputable hard money lending companies out there that can help me in my case (self employed, spotty and very low income due to the economic changes, yet having my approximate 150K of equity in my house, etc.), yet he said that I would end up paying somewhere between 12% to 18% on such a hard money loan and that I may be able to secure a loan of only $75,000.
Can someone here help and advise me? Thank you.
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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| Posted: Fri Nov 06, 2009 3:15 am Post subject: |
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Hi itsdk,
It is true that if you go for hard money loans, you will have to pay a very high interest rate. Thus, I would always suggest you to not to go for hard money loans. In my opinion, it would be a better option to negotiate with your creditor yourself and check out if they can forgive a part of your debt so that it becomes affordable for you to pay off your debts. You can even contact debt settlement companies who may help you in reducing your debts by 40% to 60%.
You have mentioned that you have equity in your property. You can apply for a home equity line of credit to cash in the equity. Then you can use it to pay off your unsecured debts. However, as you're self employed, it may get difficult for you to get a loan. However, you can still speak to your current lender and check out your options. You can also seek a no obligation free mortgage consultation from the lenders of this community and get to know whether or not you would get a loan.
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Good is the Enemy of Great. |
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