Hard Money in Today's Mortgage Market by Leonard Rosen

America's hard money expert, Leonard Rosen of Pitbull Mortgage School,, tells how hard money can be used in today's vulnerable mortgage market. As we all know, the sub-prime mortgage market has gone through significant changes in the past few months. The implosion of the sub-prime mortgage market has created an outstanding opportunity for mortgage brokers, loan officers and hard money lenders to make available an array of loan products to assist in financing to many classes of borrowers.

I am asked almost daily what are the appropriate uses for hard money and why would a borrower use this type of mortgage financing.

Hard money can be an efective tool for the residential and commercial borrower. In the case of a commercial borrower, hard money may be considerably cheaper than bringing on a equity partner. An equity partner may want a much higher equity stake in the project than the owner feels comfortable with. Especially when funds are only needed for a short term.

In a residential situation, hard money can be used for almost all of the follwing reasons:

1. Borrower has a sub 500 FICO score

2 Borrower needs an interest only payment.

3. Borrower is in foreclosure or notice of default.

4. The property is currently listed for sale

5. Borrower has no credit history

6. There is no title history or seasoning.

7. Borrower needs cash out.

8. The property is in a trust

9. The property is in probate

10. Borrower is currently in Bankruptcy

11. Borrower has no green card.

12. Borrower in Forebearance Agreement.

As you can see there are many situations that could be applicable for a hard money loan.