Across the globe, foreclosure rates have increased drastically. Things about foreclosure rates can be very alarming. For example, there were around 3000 foreclosure filings in places like Arizona. And, the number of pre-foreclosure cancellations has reduced remarkably. Even with robust economies and properties that are priced above average, foreclosure activities are not trending well. This is why a lot of people opt for hard money loans. These loans prove to be a great alternative to foreclosures. By definition, hard money loans are monetary options where real estates become collateral assets. The lender considers properties in a lien position. This is why the loan amount, rate of interest and policies depend on the borrower’s property equity. However, the borrower’s financial standing is not taken into consideration!
With this being said, are you wondering how to prevent a foreclosure by using bridge loans in New York? If yes, the next few lines will be of great help to you.
A Crazy Moment
Homeowners and investors who are employed for a very short period of time find it difficult to bag conventional loans. It is astonishing to see that loans are not approved even when they can make monthly repayments. Active foreclosures can destroy their credit scores and prevent them for asking for financial assistance (from proper banks). If you wish to save yourself from such a situation, you are left with hard money loans. There are plenty of myths about bridge or hard money loans. Luckily, most of them are nothing but myths.
The best part about hard money loans is that it depends only on your property. A good and an experienced money lender will help you get the most from your property. They use several ways to evaluate the worth of properties. Commonly, a third party firm is hired to make an estimate. These firms have zero relationship with the entire transaction. And, their estimate is meant to give a perfect valuation of the property in the open market. This report has all the details required to fund the property. Most of these reports are based on side-by-side comparisons that give details of all relevant issues in the area. If there are any property damages, these reports can help you identify them.
Loan brokers consider hard money as one of the best things in the industry. With present foreclosure environments, smart hard money lenders assist borrowers in every possible way (level).