Overview of Hard Money Loans
Hard Money or Private Money Loans as they are also referred to exist in that they fill a need that for mortgage money that traditional banks and mortgage companies cannot meet. The collapse of the markets driven by the bank and mortgage meltdown were created mostly by Wall Street and Big Bank greed. Their dumbed down credit or FICO score only underwriting guidelines for ease of execution were aimed at designing programs to securitize billions, and apparently trillions of dollars of mortgage based securities based mainly on the credit score, and not on traditional underwriting focusing on collateral, income, and ability to repay eventually doomed to fail.
The 3 C’s of Mortgages
The old mortgage 3 C’s of Collateral, Capacity, and Credit were for the most part thrown out the window from 2002-2007. Many of watched the news and heard of the so called “liar loan.” This was a client who had a high credit score and just wrote down how much money they made on an application. The High Credit Score Borrower could by a home with as little as 5% down and with very little appraisal oversight. This Meltdown then caused the eventual eradication of Nonconforming from the real estate market. With this said the once underground Hard or Private Money Mortgage industry has become more mainstream not so much as another mortgage marketing trend, but out of necessity.
Loan Programs at Hard Money Capital Group
At Hard Money Capital Group we market Loan Programs that exist and are possible. It’s not our mission to market loan programs that cannot be done. There are plenty of other sites that promote and even make promises about loan programs that are not possible to simply gather leads for sale or to make counter offers; and many sales people that work for or are affiliated with these marketing companies intend on pulling the old “bait and switch” on the down payment and terms on the transaction when the borrower is so far into the deal it is impossible to turn back. Even worse, sometimes a Website Private Money Marketing Company does not have the money in place at all, and the borrower can lose their earnest money, and any fees such as appraisal monies they have invested.