What are the consequences when you incur hard money loan debt?

When a financial institution provides a loan against a real estate property as collateral, it is known as a hard money loan. This loan is not similar to a mortgage as it is not a loan to buy a house or a piece of land. Borrowers take out this loan when they have already defaulted on their mortgage payment and require additional financing to consolidate their current debts. Therefore, if you are undergoing financial crisis then debt consolidation can be beneficial for you. If you fail to exercise financial discipline then the second loan on the property can further complicate your financial situation.

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