Myth: Hard Money Lenders Are Predatory
Sure, there are some bad apples who overcharge clients and take advantage of special circumstances clients tend to find themselves in like getting a decline from their conventional lender three to four days before escrow has to close or having their home a few days away from a tax sale auction. But, not all lenders are created equal 😊.
As a hard money lender, I can attest to doing a lot of good for clients who have been rejected by institutions who can care less about their situation and what lead them to the position they are in. Banks want the three things to protect themselves: Perfect credit, perfect income and equity – so if someone is missing one of these three, no matter how desperate or convincing they are, banks will turn them away and many times treat these clients with judgment and disrespect.
Evoque Lending and many other hard money lenders are considered Equity Based Lenders. All we care about is equity. We verify credit and income to make compliance a priority, but what separates us from Banks and institutional Lenders is that we listen to the whole story and look at the big picture before making a decision to lend and because of this underwriting mentality, Evoque Lending and our competing colleagues have provided great loans, many in emergency situations for clients who would have suffered otherwise. Now, of course hard money rates and fees are higher because the loan itself is a higher risk loan, but ask a homeowner who is about to lose their home if they prefer to pay higher rates and fees and save hundreds of thousands of dollars in equity and their home or lose their home and all its equity because banks don’t care to take a chance on him.
A Hard Money Lender like Evoque Lending gives clients and homeowners who have had a tough time obtaining financing, a second chance to borrow against their hard earned equity and put themselves in a better financial position. We also help our clients clean up their credit free of charge so that they may be able to refinance into a conventional loan and take advantage of today’s low rates.