What happens if...

Financing, Hard Money Lenders, Private Money
1

I thought about this question on my ride into the office this morning and I figured if I have this question somoene else might as well.

What happens if you secure a HML and don’t have an exit plan (refinance, sell) or it fails? What happens to the loan? What course of action does the HML take?
(No, this is not my situation, but I figured a newbie may not think this far ahead.)

2

In the scenarios that I have seen the HML jacks the rate up to 18%+ until the borrower either A)Refinances, sells, etc… B) Turns the property over to the lender.

3

Yes, typically you have additional fees to extend an HML past it’s term. If you stop paying they can foreclose.