Private Mortgage Solution to Clear House Liens
What You Need To Know
A lien is a legal claim on a real estate property that a creditor can use to seize a home or other property. A mortgage company will place a lien on a property for unpaid mortgage payments. Government agencies, contractors, and family members can also put liens on your real estate property.
Alternatively, borrowers can consider a mortgage solution from private lenders to pay off these house liens and remove their charges on the real estate property. Private mortgage lenders tend to have more flexible lending guidelines compared to traditional lenders. Private lenders focus more on the value of the property and less on the creditworthiness of the borrower.
At Canadian Private Mortgage, our clients know that we won’t steer them into any products or financial terms that don’t fit their personal goals.
Our private mortgage solution for borrowers looking to clear house liens charged against their real estate property is ideal for property owners who are willing to improve their borrowing habits and return their financial situation back to normal. Any proposed lending solutions will include an exit strategy that enables clients to get back to normal as soon as possible.
Lending Solution For Borrowers Looking to Clear House Liens
Consolidate Multiple Liens Into An Affordable Mortgage
When homeowners have multiple liens on their property, this may be preventing them from getting a mortgage loan through the traditional lenders. One of the best solutions to get rid of the liens is to consolidate them into a mortgage.
A mortgage is a legal instrument that allows the borrower to use the property as collateral for the loan. However, since the loan is secured by a real estate property as collateral, the interest rate is competitive and low compared to unsecured high-interest loans. This makes it a suitable solution to pay off the outstanding liens and remove those charges from the property.
Financing Options for Consolidating House Liens
The process of obtaining financing to consolidate multiple house liens is much simpler done with a private lender than the process imposed by traditional lenders. Although private lenders will still ask to verify some information to satisfy their internal lending guidelines, in general, it may actually be faster and easier.
Private lenders assess a mortgage loan application based on the property value and its location in the neighbourhood. A property appraisal is certainly a requirement that borrowers will need to satisfy as part of the refinancing process.
Also, generally speaking, private lenders will allow higher loan-to-value (LTV) than traditional banks and lenders.
Private lenders are an ideal option since they are not tied to the same lending guidelines as traditional lenders which is limiting. Unlike bank loans, private lenders focus more on the value of the property and the borrower’s exit strategy to determine the terms of the loan. This means that they will not make any preconditions on the borrower’s credit score or debt to income ratio.
A big advantage of hard money lending is that you can beat traditional lenders’ interest rates and timeframes. While traditional banks are known for their long loan terms, hard money loans can close in just days or weeks. This is important in time-sensitive situations, such as paying off house liens. Getting a mortgage loan approved faster helps you resolve your personal situation faster and avoid delays.
Origination fee can also be referred to as “commitment fee”, or any other name. It usually refers to the underwriting or processing fee. This fee can cover a variety of expenses, from processing the loan to underwriting the loan. The amount of this fee depends on the lender and the type of mortgage loan. It is always stipulated in writing so there is no bad surprise to the borrowers on the closing day. If you are not sure how much you are paying for your origination fee, it is a sign that you are not working with an ethical private lender. Be aware and find other private lenders who are transparent with their origination fees.
At Canadian Private Mortgage, we disclose our commitment fee clearly in writing from the beginning of the process.
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Since est. 2008
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What Our Clients Say
Andrea Chase, Hamilton, ON
I had 2 yrs left on my consumer proposal, with the 2nd mortgage offer by Matrix Mortgage Global I was able to pay off the proposal and re-establish my credit
Steve Darcy - Surrey, BC
I own a historic mixed use commercial/residential building that I wanted to modernize. Matrix Mortgage Global provided me with a term loan to complete the renovations
Blake Taylor - Banff, AB
I own a family bed and breakfast just outside Banff and ran into some tax arrears. Our bank turned us down for a commercial loan. Matrix Mortgage Global provided us with a 2nd mortgage which we used to pay off the tax arrears.
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