Can I Get A Hard Money Loan If I've Declared Bankruptcy?

You can apply and be approved for a hard money loan if you have declared bankruptcy.

Bad credit does not commonly affect one's application for a hard money loan. These are considered high risk loans for this reason. Since hard money loan lenders focus on the value of the collateral, usually property, approval is not based on credit score, bankruptcy, or other aspects of your credit history that a conventional lender may consider. While your credit may be reviewed, bankruptcy will not automatically cause your application to be denied.

It is important to note that is you have filed for bankruptcy and you are approved to a hard money loan, filing for bankruptcy again may not protect you if you default. In the event that you do default on your hard money loan, it is likely that you will be forced to sell the property. You may not be able to avoid the debt due to your hard money loan lender by filing for bankruptcy if you already have bankruptcy on your record.

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