Desperate & Looking for Hard Money

My name is Eva C. Senior and I am from Bristol, Indiana. My husband and myself are looking for a hard money loan for personal reasons. My situation is my husband was hit by a train at work and sustained a spinal injury and had surgery. With that, we received a settlement and bought our home cash $250K. One year later my son was hit by a truck after getting off the school bus, he was almost killed. He now has a traumatic brain injury and is now permanetly disabled. And with that accident came lots of debt. To make a long story short, we had to file chapter 13 bankruptcy to keep our house.

What we are looking for is a hard money loan to pay off the bankruptcy so that we don't have to worry about our home. It is important to keep our disabled son and our youngest son in the same home if at all possible. I am a realtor and my husband manages a warehouse. Can anyone please help? :cry:

Darryl Dahlen

Commercial Loan Officer

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Jan 05 '11, 07:44 AM

I am very sorry for your circumstances. Your family has certainly gone through a lot.

In my opinion, you would be better served by a private money loan. Reason being is that you can often obtain much better terms with private money.

Most hard money lenders offer loans in the 9-15% range with 3-6 points. Their loans are typically less than 18 months in length. The fact you have a chapter 13 may prevent you from obtaining conventional financing and the hard money lender knows that. Like you, they don't want to take your home so they may be apt to simply pass on that fact alone since they look for a solid exit strategy. That, and you certainly don't want to make payments on a high interest loan.

You might be able to secure a private money loan, at a rate that is much more acceptable, for a longer period.

That being said, you may want to re-word your request.

Jon Holdman

Real Estate Investor · Wheat Ridge, Colorado

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Jan 05 '11, 09:27 AM

Do you have some exit plan? That is, a way to pay off the hard money loan in a short period of time. I think even 18 months would be a long time, 6-12 is more typical.

Jon Holdman, Flying Phoenix LLC

Corey Smith

Residential Real Estate Agent · Houston, Texas

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Jan 05 '11, 09:42 AM

Eva I am truly sorry for your string of bad luck that has left you in an undesired situation. I hope that you and your family remain strong through these difficult times.

What are the details of the bankruptcy? Would you have to sell your home to pay your creditors?

Mathew Hill

Real Estate Consultant · Stamford, Connecticut

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Jan 11 '11, 03:13 PM

I may be wrong as I am not an attorney, but isn't a Chapter 13 where the trustee determines how much you pay to your creditors based on what you can afford? Personally I find that Chapter 13 is the worst way to go as you are still stuck paying back creditors.

I personally feel that you might be making a hard situation seem really bad when it doesn't have to be. One of the things you do get to keep in any Bankruptcy is your home, so why get another creditor into the mix.

If you can provide details I could probably give more detailed advice. Trust in God and stay calm, as long as your day-to day needs are met with your income, there are always options. Filling the Bankruptcy was the hard part. You have a long road ahead of you, but it is possible.:)