A hard money loan is a type of asset-based loan, which is usually provided by a private lender, oftentimes an individual.

Terms vary between lenders, are usually more specific and strict than with conventional lenders, and they often come with high interest rates. Typically, a maximum of 70% of the home’s market value will be loaned by the hard money lender.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…It is possible to refinance a hard money loan into a more traditional mortgage on a foreclosure or any other property; however, the borrower will want to fully research the terms of both the hard money loan and refinancing loan. He/She will also want to make sure they qualify for the refinancing that they want…”

Qualifying for hard money may be easier in certain aspects(often credit score is not considered) than with typical lending institutions, so this is an important point to consider.

If the deal is not structured right, there may be seasoning issues with the institution when the decision to refinance is made. Seasoning is a term that refers to the length of time that the property has been owned by the seller. Different types of loans have different seasoning requirements, and these will need to be fully understood before setting up the deal.

Many hard money lenders will not issue a loan on a home that will be the borrower’s primary residence, so this will also need to be considered.

The new value of the home at the time of refinancing will need to be verified, and any repair or fix-up costs will need to be validated through receipts and other paperwork. The investor may also need to wait from 6-12 months to refinance depending on seasoning issues.

“…In conclusion, it is possible for a foreclosure property to be refinanced from a hard money loan originally used to purchase the home –or other property– but this will depend on several factors: the terms of the original loan, the terms of the new refinanced loan, and whether or not the buyer qualifies for both loans. This is not a situation to jump into without thorough and proper research…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.