What Happens When your Deal's financing Falls Through?

When an investment property purchase is on the line, losing financing at the last minute can be devastating. But what happens when time runs out on your financing? When a large amount of earnest money is at stake on a purchase, a bank loan that falls through at the last minute can be very costly. Should you need to save a deal, an alternative for financing of investment properties is bridge financing, or non-bank financing. A bridge loan is a temporary, interim loan that allows you to purchase a property and then later refinance or resell. But if you caught yourself in a bind, would you know how to get a bridge loan, or hard money loan closed the fastest possible? Here are a few tips for getting a bridge loan closed quickly should your bank loan fall through:

1.Find a dedicated hard money broker: Use someone that only deals in hard money loans. Don’t fool around with shopping the deal to a bunch of lenders yourself. You won’t get a better deal, you won’t be a priority, and you may get taken by a loan scam. Leave it to the pros. Find a dedicated hard money broker and you’ll get to the finish line much faster.

2.Have the Title Report ready: I can’t tell you how many loan requests come to us with a ‘rush’ and they don’t even have a preliminary title report in hand. If you don’t have the Title going, get it going ASAP, especially if you want to close tomorrow.

Read the rest of the tips at this link:

http://privatemoneyutah.com/6-steps-to-close-a-hard-money-loan-fast/

Have you had an experience with your financing falling through on a deal? What do you do? What was the result? I can’t tell you how many stories, sad stories, that I hear about someone who loses a good deal because of a bank loan that fell through. Don’t let that happen to you or your clients.

Posted by Corey Curwick Dutton