"America's Leading Expert on Hard Money Lending Leonard Rosen"
With the recent upsurge in residential
foreclosures nationally, homeowners are finding themselves
in a very unusual predicament. Over the last 7, borrowers
with less than perfect credit fell into a category called
:sub prime borrowers". This class of borrower was able
to obtain a mortgage with little or no documentation.
The lenders were all too anxious to lend money to this
class of borrower. Consequently, many borrowers took advantage
of possibly a once in a life time opportunity to own a piece
of the American dream.
Then reality set in. Many borrowers purchased a mortgage
with a negative amortization option along with interest
only options. Rather than pay the fully amortized 30 year
rate, they only paid the interest and in many cases paid
the negative amortization rate.
The problem with this scenario is that mother time has
caught up and the once easy affordable payment has re-set
and the borrower no longer could afford to keep the property
and make timely payments when the adjustable rate changed.
The question is, who is at fault? Many politicians and
consumer agencies believe the mortgage companies are at
fault for funding to this class of borrower. The mortgage
companies qualified the borrowers on the teaser rate of
1%, not on the fully amortized 30 year rate. This turned
out to be a perfect recipe for disaster.
We now have thousands of borrowers across the country facing
foreclosure. So what’s the solution?
A borrower may be able to obtain a hard money loan based
on the equity and value of the property. This is called
a hard money mortgage or private mortgage. The interest
rate is considerably higher than a sub prime loan but the
borrower is able to keep their property and develop a game
plan rather than lose their home to foreclosure.
Many call hard money lenders "Satan" for taking
advantage of a homeowner in desperation. I suggest that
the hard money lenders who offer this type of hard money
mortgage are "angels".
Without a safety net, many borrowers would surely lose
their house. Hard money mortgages, when properly used, can
be a very useful tool and a life saver.
I prefer to call hard money lenders "Angels".
http://www.pitbullmortgageschool.com/article_leadexpert.htm
About The Author
Leonard Rosen
President of Pitbull Mortgage School, the largest organization
in the country teaching hard money to mortgage brokers and
hard money lenders, Leonard Rosen was previously the CEO
of a large medical group with 6 clinics. Also the former
anchor of Financial News Network and host of the Leonard
Rosen Show.
A Lifetime member of Who's Who in Business, and author
of "From here to Financial Freedom," Mr. Rosen
is a renowned National Speaker who has been featured in
CNN, Forbes, American Chronicle and many local and National
publications. Currently Mr. Rosen is a private consultant
to numerous mortgage companies. A former Army Ranger, and
a graduate of both the University of Minnesota and Shattuck
Military Academy.
http://www.pitbullmortgageschool.com
Article Source: Article
City
http://www.articlecity.com/articles/business_and_finance/article_8819.shtml
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