Hard Money Lending Requirements to an LLC
I've had some very preliminary discussions with Hard Money Lenders, both have stated they only loan to LLC Entities. My natural assumption is that it's easier to foreclose on a property that's held by LLC vs an individual, especially in the State of Florida. Anyone have any insight to this requirement?
Thanx in adance
Sly
Most Popular Reply
Individuals may move into a home even if they state and sign statements that they will not do so. That can change the rules for foreclosure and it can also expose the lender to claims under Dodd-Frank and the SAFE Act. I foreclosed on a mortgage I purchased a few years ago. The loan docs clearly stated it was for an investment property. The borrower filed for a homestead exemption for property taxes and even though she had another homestead exemption on another property that she claimed as her principal residence--she was obviously making at least one false statement--we had to treat her as an owner occupant when we foreclosed.