Loan against Property

[Kerry Noble Jr]

I have an associate looking for a short term loan against the equity in his house. He has 100% equity. loan will be secured against the property. 

[Alan Nelson]

Quote from @Patrick Roberts:

Quote from @Alan Nelson:

@Patrick Roberts - thanks for the reply.  Definitely a lot of conflicting information/ambiguous guidance on this issue.

That was exactly the problem I ran into that led me to pay for attorney guidance. It's very ambiguous. The attorney I spoke with basically said that if you give someone a "business purpose" loan secured by their home with a 12%-18% APR (like most hard money loans) and they default and may lose their home because of it, you're going to have a very hard time justifying and enforcing this in a foreclosure.

To the point, my paid attorney told me something different.  Granted, one thing that came out of the conversation was a more robust affidavit for the homeowner/principal of the borrower to complete.