Are there private lenders for primary residence bailout loans?

Question

Whenever I speak with a homeowner facing foreclosure, they always ask if I can help them get a loan to reinstate their mortgage. I understand why it's nearly impossible to find a lender for that particular situation.

Are there any private lenders in BP that offer bailout loans for a primary residence? Any other creative ways for them to borrow money?

Chris Seveney · Answer

You will not find traditional private lenders for primary loan bailouts because of CFPB compliance and usury laws. Way too much risk. If the loan is owned by a fund (For example our fund buys defaulted mortgages), then we are more apt to do a workout than a traditional lender, but its a restructuring of the loan.

For the borrower, their best bet is to file bankruptcy. That is a essentially a bailout loan because the debt is restructured and they are saved from foreclosure as long as they make their payments.

Are there private lenders for primary residence bailout loans?

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