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Los Angeles, California (PRWEB) May 15, 2014
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.
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.
Yanni Raz of HML Investments California hard money lenders, had this to say about the growing fraud within the industry:
“It’s unfortunate. Growth in our sector has opened up several doors for the industry, but the rise in fraud is undermining the efforts of the REPUTABLE organizations offering capital. The only thing we, as an industry, can do is educate borrowers and do our best to expose those that prey on the unsuspecting borrower.”
Other organizations have also entered the movement to establish more ethical practices in the hard money lending marketplace, as well. Many are recommending that borrowers investigate the validity of the individual or investment group providing the capital to help deter the fraudulent or predatory practices.
Anyone suspecting a lender of fraud should contact the National Mortgage Licensing System (NMLS) with the lender’s details.