Hard money and concern

[Samson Tefera]

I took out a 1 year hml on my second flip, thought the project would take 3 months to complete, instead it took 6 months and I will be listing the property for sale shortly.

I am concerned as to what would happen if I am unable to sell the house before the hml is due in full.

The hard money lender has assured me that for a fee, they could extend the loan, but I don’t see why they would since taking over the house would make them larger profits that extending my loan until I sell the property. 

Also, what happens if the loan is due while a property is under contract pending?

And lastly, the loan is under my llc, and I would like to, if property does not sell, refinance under my llc instead of my name, and I can't seem to find any lenders that will refinance & keep the loan under my LLC.

Thank you

[Derek Dombeck]

HML's are not typically looking forward to a loan defaulting so they can take the property away from you. We make money by giving loans and helping people succeed so they come back for more loans in the future. That being said,  if a borrower is not performing as agreed and stops communicating with us, then we have no choice other than to foreclose.