Hard Money - Worse Case Scenario- Foreclosure

[Samantha M.]

What is the worst case scenario when using a hard money lender. For instance if you purchase a property it cash flows $300 and then the market heads south. Now your cash flow is negative and you can't keep up with mortgage payments.

What is the worst case scenario? Hopefully you refied by now and the bank has a conventional mortgage. Will they foreclose on you in the traditional way?

[Kyle J.]

Originally posted by Samantha M.:

Kind of embarrassing that I dont know this, and owning 6 rentals in DFW, but is texas a deficiency state?

Also for homeowners that are able to demonstrate hardship, do lenders sometimes waive the deficiency?

Here's some info for you:

http://www.nolo.com/legal-encyclopedia/deficiency-judgments-after-foreclosure-texas.html