Unlicensed Hard Money Lenders Exposed May 14, 2014 Lost Angeles, CA – The hard money mortgage industry continues to flourish due to the tightened purse strings of large banking institutions. This is easily seen in Southern California, where the marketplace is ripe with opportunity, yet short on investment capital. And, while this gap has been narrowed by hard money lenders, many have fallen prey to lenders with questionable qualification tactics and predatory lending practices. Unlicensed lenders, for example, have become a serious concern in the hard money industry. Due to the ease of “simulating expertise” with a website and business card, many are tricked into loans that they cannot possibly afford. This dynamic has been seen time and again with the elderly population, causing many to default, and leading to repossession of the property by the investment house. To counteract this impact, many reputable hard money lenders are exposing these practices, ensuring that the industry, as a whole, does not take the negative PR hit. The education on how to avoid such improprieties has begun within the industry, as recommendations are made to check the credentials of any hard money lender offering financing for a property. A state license is required to lend in California, and any lenders refusing to produce such documentation should be dealt with at one’s own peril. Additionally, many are falling victim to terms and conditions that simply aren’t realistic for repayment. Some are touting “12 months, no payments”, creating a payment schedule that simply isn’t feasible for the average mortgage borrower. This, also, results in repossession; something that many within the industry believe is the primary goal of such tactics. Borrowers who do cannot verify the professionalism and reputation of a particular hard money lender are advised to inquire extensively about a firm before proceeding. Such efforts can help to further expose the predatory lenders and help steer borrowers to more reputable organizations. For More Information – Any inquiries regarding hard money loans or scams within the industry can be directed to Name: Yanni Raz Telephone: (818) 308-4443 Email: info@hmlinvestments.com Web: www.hmlinvestments.com Social Media Connections Linkedin: http://www.linkedin.com/in/hardmoneylending Facebook: www.facebook.com/Hard.money.lenders.CA Twitter: www.twitter.com/HardMoneyLoanCA LA Times Listing: http://local.latimes.com/b29431564/HML-Investments