Hey pal,
There are hard money lenders that give these loans to customers. For the most part, the loan period is short-term. If you are someone who has been rejected for availing a loan from a bank or financial institution, you can try getting a hard money loan. If you are curious about the topic, take a look below.
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Hard money loans are given by individuals who wish to get high interest on the loan amount. It is a type of non-conventional financing. Though, there are pros and cons to this loan. You should consider that hard money loans have a higher interest rate and stringent terms than standard loans. The current interest rate for the same is 12 percent and up.
What happens if you default on a hard money loan? Property :If you default on a hard money loan your property will be seized by the bank. It will be put on auction to recover the loan amount. There are rules and regulations about the foreclosure of an asset. The definition of ‘default’ is not limited to non-payment of the loan amount. It also includes a breach of contract.
Credit Score :Your CIBIL score aka credit score will take a hit. When you don't make payments for credit loans on time, your credit score continues to drop. I imagine a drop of at least 85 points to 160 points in such a case.
Investment :You will lose the investment you have made in the asset.
This is all from my end on hard money lenders.
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Authors Of The Question
What happens if you default on a hard money loan ?
Anamika
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2 Year
2022-06-27T20:15:34+00:00 2022-06-27T20:15:37+00:00Comment
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