London, ON -- (SBWIRE) -- 03/23/2017 -- There is a new network of private mortgage lenders in the London market, that can be reached through the Londonmortgageshop.ca. Private mortgage lenders are individuals who wish to fill the gap left by banks in offering mortgages. With no affiliation to banks, these lenders are willing to offer loans to poor credit or individuals with insufficient income. Private lenders offer different services including second mortgages, home equity loans, and debt consolidation among others. Private lenders are keen to provide custom loan services that will address the needs of customers. The lenders of private mortgages can also offer clients a loan for an extended term to make monthly instalments more affordable.
Private Lenders of Bad Credit Mortgages in London
It is impossible for an individual to get a bank mortgage with bad credit but those who were turned down by banks can approach private lenders. To give a loan, they rely on the price of a property and total of debts in it. Private lenders make a profit from real estate and therefore care more about equity in the property and not credit score. London private mortgage lenders prefer issuing money as registered mortgages on a property so that they can sell it off if the borrower fails to honour the agreement. Londonmortgageshop.ca can negotiate the best deal on a client's behalf without regard to credit score.
Types of Loans and Services offered by a Private Mortgage Lender
Private lenders serve people who could not get bank loans or those looking for variety. They can offer second mortgages, home equity loans, loans for poor credit, private personal loans and even business funding to investors. Such loans and services from London private lenders ensure actualization of one's financial goals even after rejection by banks.
Second Mortgages by Private Lenders
A second mortgage is a loan given against property with another loan. Borrowers of second mortgages wish to leverage equity remaining in a property after the initial mortgage. To give out this loan, a private lender must ensure that the borrower has 15% equity in a property to avoid making losses. Even with a power of sale, lending to very little equity makes it impossible for the lender of second mortgages to recoup after others have claimed their investment. This is because the Ontario Mortgage Act requires that mortgage lenders claim their investment in order starting with the first.
Private Funding to Stop a Power of Sale
A power of sale means that the property will be sold to recover money after the borrower has failed to pay fees. If faced with a power of sale, the client should move with speed to seek funds that can be used to prevent loss of property. To ensure rapid processing of the money, the client should have all documents related to the power of sale. Private mortgage lenders understand that power of sale is a time sensitive process and strive to process the funds in as little as a day.