Loans For People In Foreclosure
The harsh reality is that foreclosure hits harder than any other legal proceeding related to money and debt because it takes away the literal roof over your head. Once the foreclosure proceedings begin, you are in a tough spot. After all, loans for people in foreclosure are almost a contradiction in terms.
Or are they?
There are options even if you are already in foreclosure. One of the options is "hard money" lenders. This is a whole I was going to say subculture of lenders but that indicates that these lenders are less than they are. This is a whole separate area of lending and it offers refuge to people who are in desperate need of immediate cash. It also offers a great investment opportunity for people who have money to lend and who are willing to take a risk in return for a decent rate of interest.
Bridge Or Swing Loan
One of the deals that a hard money lender will make is a bridge loan (or swing loan). This is a short-term loan that is offered to hold people over until they can make arrangements for longer-term loans. The short term can be as short as a couple of weeks or as long as three years.
While there are companies specifically set up to make hard money loans, there are other options and you might know someone who is in this position. You need to look around among the people you know and even your family to see if there is someone who can be a private "hard money" lender. If you are in foreclosure, all you need sometimes is that short term help. Make a list of people you know who might be interested in a private deal.
There are loans for people in foreclosure and these are the two main sources: companies that specialize in such loans and private individuals who are in a position to act as your private banker for a short while.
Be Creative
A friend of mine calls his way of doing business "creative
financing" and some of his ideas would apply to people in foreclosure. Creative financing is really nothing more than looking at unusual ways of coming up with quick cash. There are some really creative ways and the list is limited only by what you have as hidden assets.
Want some examples?
A woman listed her car on eBay and sold it in three days. This provided her with a quick $9,000.
And here's one more.
Another woman made a deal with a local business to provide her services for six months at a discounted rate for payment in advance. She would have billed them $200 a week but the immediate $3,900 for a 25 percent discount helped her out of her dilemma. Mind you, she had a good reputation regarding her work so the company had faith that she would provide the promised service. (And she
did.)
It is hard to think outside the box when you are under pressure but this is the time when you need to be able to look at options clearly. Take a deep breath, try to relax, and begin writing a list of people and companies who can help you right now.