…i have recently run into numerous homeowners in preforeclosure that don’t want to sell their home but want to try hard money loans to get them back on track. is there any way for me to make money by referring hard money lenders to them???
If they can’t pay their mortgage at 7 or 8%, how are they going to at 14% + 5 points?
Additionally: Don’t be a vulture, Charley, preying on others’ woes. If you can help someone AND profit it’s a win/win but homeowners CANNOT possible get a win/win out of trying to save a foreclosure with hard money!
… please understand that i am as far from a “vulture” as they get… in fact i am just trying to help the couple of people that do qualify for a hard money loan. it is a viable option for a “few” of the folks i meet. i just want to know if i can legally get paid for “birddogging” for a private lender???
Yes you can…but like Keith said…to paraphrase…why bother.
My name is Keith also. I am mortgage broker in Florida. Both of the other gentleman have a point but hard money could work in the right circumstance. I provided hard money for my clients at 13.5%. Guess what? They are using the refinance to payoff ALL of their debt. Even with high interest rate, they are still saving about $1000/mth. In 6 mos., with better scores, I will refinance them into a lower rate (hopefully around the 7’s).
So, this CAN be the answer for some in the right scenario. And for others, it may just give them few months of breathing room to figure out a better plan. I hope this helps.
The only advice for you would be to get a license as a mortgage broker. Not sure of exactly what you need to do get licensed in your state. Some states like Massachusetts doesn’t require individual brokers to be licensed, just the company. If you’re in Florida, I think you need to take a class and a test though to get licensed.
The other thing you haven’t mentioned is how much equity do they have in their home? Our mortgage office next door keeps running into people who don’t have enough equity in their home due to a declining real estate market and because they’re behind, they have bad credit scores so lenders won’t do stuff like 90-95% CLTV.