Private Mortgage Loan

A private mortgage is a non-traditional method of obtaining mortgage financing. A private mortgage loan is used:

• when we have received a 60-day foreclosure notice;
• if the bank refuses to renew our mortgage;
• if the bank refuses to refinance us for debt consolidation;
• when we are going through a divorce or having a separation;
• when we must remove a co-signer from the house;
• when we have just sold our house to buy a new house but are denied by the bank; and/or
• when you may be self-employed with an income that is difficult to demonstrate or a credit rating that is too low.

All these reasons are valid for a private mortgage loan that can meet our needs. The private mortgage can be obtained rapidly and not show up on the credit bureau. Also: bad credit? no problem! The private mortgage loan is based on your property's equity, the location of the property and your repayment capacity.

The reason why you may want to do business with a specialised mortgage broker when it comes to obtaining a private mortgage loan are different from private lenders, whose job it is to make loans and make money, not fix your credit. Contrary to a mortgage broker specialized in private loans, private lenders do not specialise in credit rebuilding and are not trained to help you requalify with banks at the end of your term! Also, there is a common practise with private lenders called “loan to own”, where private lenders will make you an offer that looks good on the outside but put clauses in their contracts that are so restrictive that you can easily default and then have them attempt to seize your home! The devil is in the details.