Why You Should Care About Hard Money Loans

Lots of unsuspecting homeowners have no idea that when they refinance mortgage debt, they could be turning what was once considered purchase money into hard money loans.

This is especially true in states such as California. Purchase money loans on a personal residence in California carry no recourse. This means if a homeowner is kicked out of the house because the bank foreclosures, that bank can't hold a California homeowner personally liable for purchase money loans. But hard money loans are different.

Some homeowners refinanced simply to get out a bad loan with a high interest rate and into a lower, fixed-rate mortgage . . . read more about Hard Money Loans.

More Articles by Elizabeth Weintraub:

• 3 Things About Mortgage Refinancing
  
• Types of Hard Money Loans
  
• Deficiency Judgments After a Foreclosure

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}