Hard money loans are a unique alternative to traditional bank loans. Just like how receiving a hard money loan is unique, so is the process of paying this type of loan back. Learn everything you need to know about paying off hard money loans by reading on.
Because hard money loans are provided through private lenders, the process of paying off the loan is unique to the lender. However, most lenders follow a similar pattern. A borrower must pay off the loan's monetary value, as well as the beneficiary balance. If a borrower is ready to pay off their hard money loan, they should ask their lender for a payoff statement or for a beneficiary statement. These statements are unique to a regular statement because they include closing fees. Some lenders allow borrowers to view this statement online or through an automated phone system, while others require an in-person meeting or written request for an exchange of this statement.
When paying off your hard money loan, be sure to make the request for your loan payoff early. If you can estimate when you'll be ready to pay off your loan, request the beneficiary statement for this date as soon as possible. Frequently, private lenders take some time to arrange for these documents. The sooner you request the statement, the sooner you can inspect these documents and pay off your loan.
Finally, be sure to make your request in writing. By making a request in writing, your lender will have a traceable way of receiving your request. With this paper trail, you can stay organized and pay off your loan with ease.
Interested in hard money lending? If so, contact the AHL Hard Money Network! You can contact our hard money network by texting or calling us at 813-516-5210 or emailing us at ahlmoneyresources@yahoo.com. We hope to hear from you soon!
