Hard Money Lenders Directory Launched

Sept. 5, 2012 - PRLog -- Hard Money Loans are based on the value of the property and not the Borrower. In today's lending climate, many people find it impossible to secure a loan to buy real-estate.   The just launched HardMoneyLendersDirectory.com website makes it easy to find local hard money lenders organized by state.

There are times when you need extra money to pay for an unexpected expense. Perhaps you have suffered an illness or an accident, maybe you were hit with an unexpected bill or fee that you cannot cover. What’s worse, your credit rating may not be high enough to get the unsecured loan you need to pay the bills, so what can you do?

In times like these, hard money loans can provide you the currency you need to pay your bills and overcome unexpected events without having to rely on your credit rating. Hard money loans are based on the value of property, not your credit rating. Since you are putting up the property as collateral, all you really need is proof of ownership with no other loans attached to get the money you need to pay the bills.

If you have been hit with an unexpected event and are short of cash, there are hard loan lenders in your region that can provide you the money you need quickly without the hassles of going to the bank. These private mortgage loans use your own real estate holdings as collateral to help secure the loan that you need.  

For a complete list of private money lenders visit: http://www.hardmoneylendersdirectory.com

The establishment of hard loan lenders is a practice that began in the late 1950’s when new laws were introduced to overhaul the stagnant credit system in the US. Essentially, these hard loan lenders provide monetary funds for both private and commercial use.

Consequently the interest rates for these type of private mortgage loans are somewhat higher than conventional mortgages or loans that utilize your credit rating. The interest is higher because there is more inherent risk involved to the lender, but the terms can be negotiated just like a standard loan.

Naturally, every hard money loan lender operates under their own guidelines with some being willing to lend money more readily or will less strings attached than others. The diversity of this practice is understandable since these types of loans are usually for times of distress, so the lender understands that the borrower is under some type of stress where money is needed quickly, in some cases to avoid or stave off bankruptcy which can lead to the borrower not paying back the loan.

The amount of the loan is limited by the “quick-sale” value of the property itself, which may be lower than the fair market value by roughly 30%. Once this limit is set, the borrower can take up to that amount of money for their loan. For example, if the quick-sale value of a property was $100,000, then the total amount of money available for the loan would be roughly $70,000 maximum.

Recent dips in the housing market have also degraded the value of most homes, however with prices having bottomed out in 2011. These prices will probably uptick over the next few years. To secure your hard money loan, check out the lenders who offer this type of program to help you pay unexpected bills or secure the loan for a small business. Whatever your needs, a hard money loan can be the answer.