Second Mortgages And Hard Money Financing

July 18, 2008

canadian-money2.jpgWhy home owners are in need of second mortgages and hard money financing?

Second mortgages and hard money financing are a short-term loans that help to solve urgent financial problems faced by home owners. A borrower’s home is used as a collateral to secure the second mortgage or hard money required by the borrower.

Hard money financing is dealing with short-term“bridge financing”. It is a “distress” loan that helps to tie over an urgent need to resolve a financial problem. The loan amount required as a second mortgage is normally between $30,000 to $150,000. But, in the case of a 1st mortgage financing, the loan amount could be sizable and in excess of $150,000. This type of financing provides 1st mortgage loan to pay off the original mortgage lender who is demanding immediate loan repayment or foreclosure proceedings have already been initiated by the mortgage lender.

Stopping Foreclosure

Losing a home through foreclosure is financially costly, emotionally stressful and may have a long term effect on a home owner’s credit standing and hamper a borrower future credit application. Hard money financing may provide the solution to re-organize your debts and help to stop the foreclosure proceeding against you.

If you are faced with financial difficulties in making your mortgage payment on time, you need to consult your bank, a mortgage loan officer or a lawyer as how best you can solve your problem. Once your delinquency stretches over 120 days, your bank will demand for repayment of the loan owing, or foreclose your home to recover the loan.

Click on this link on “saving your house from foreclosure”.

If you like to find out more information on getting a 2nd mortgage or hard money financing,  kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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The Foreclosure Process in British Columbia

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