Well, it is not news that there is a lot of turmoil in many of the United States’ real estate markets today. There is also a lot of misinformation and unknown information with regards to many of the sub-prime, Alt A and A paper loans that were originated in the past few years. So, how is this affecting hard money lenders? If you own property in some of the states and counties that have been hardest hit it is likely that most hard money lenders will have increased requirements and may not be interested in lending on your property at all until the market settles out. Many residential markets in California, Florida, Nevada and Arizona are on special lists that data companies are providing to lenders and are being labeled as higher-risk markets due to their pricing volatility today.

Commercial and other income producing properties are still favored to residential properties as they are easier to value and understand from an underwriting perspective.

This entry was posted on Sunday, December 16th, 2007 at 11:07 pm and is filed under Financial News, Hard Money. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.