DEFAULT DEBT LECTURE BEFORE DURING AND AFTER FORECLOSURE

I am amazed at the two sides of the controversy over failed personal debt. We all know the dynamics of the argument. I want to point out something leaning toward choosing a side when I do. I have loaned money out and secured that loan with a second Trust Deed. My faith at all times was in the property and no where else

MONEY LENDING IS BASED ON MATH

You see hard money lending is based on hard and fast facts. What will the property be worth under worst case conditions in the event of a failure to repay the loan. I spent 12 years around this subject matter and the only relief you can expect to get is the property itself.

PROPERTY IS SECURITY FOR THE LOAN

As a second lien holder, if the borrower defaulted, I would start foreclosures proceedings and if there was equity, I would be mindful of making payments to the first to protect my interests until the trustee sale. You get reimbursed for everything out of the sale. At no time do you spend any more time contacting the borrower

WOULD ANY LENDER SAY THIS TO YOU

Can you imagine a lender sitting down with a borrower or buyer and saying the following: Now you understand that you promised to pay me back and I am expecting you to do so. If you don't, the word will get out about you that you don't keep your word or your promises. You will be ostracized at church, in social gatherings, at the work place and in your own neighborhood. So you better pay me back or I will ruin your credit too

MATH IS THE GOVERNING FACTOR NOT ATTACKING THE BORROWER

When you engage math, it doesn't get emotional. Buying a home while it is fueled by emotion in the beginning answers to math and reality in the end . If the lender has got worries, deal with them up front. Require more of a down payment because employment and other assets may or may not be there in the future.

HERE IS A SURE FIRE WAY NOT TO LOSE LOANED OUT MONEY

Don't make the loan if you are not comfortable with the borrower or the property. As to the borrower regardless of their circumstances, the damages of losing a home, their money and their credit standing...well that remains a very personal journey and no ones elses business