In a recent article by Karen Freifeld for reuters.com, the Department of Financial Services is looking into 9 “hard money lenders,” to see whether they are intentionally creating hard money loans with terms that might be driving borrowers into default.
What are “hard money lenders?” I asked my friend and colleague, Assaf Ran, CEO of Manhattan Bridge Capital, Inc., to give us an explanation of this term. Below is his response:
When you sign a purchase agreement for a real estate property, you can sign what’s called a soft contract or a hard contract.
Soft Contract
Soft Contract refers to situations where you can exit the contract and your down payment or deposit is refundable.
