What happens if the borrower defaults on the loan?
People in our country default on credit obligations. This is a fact and we must protect ourselves from it. We protect ourselves by structuring the loans in such a way that you will actually make MORE money if a borrower defaults. We do this by securing equity. We will not make a loan unless we are sure the value of the property is what the borrower says it is (we use certified appraisals). The bottom line is simply this: if a borrower doesn’t pay us back we must take the property back and resell it to regain your investment.. but in many cases you might actually make MORE money.
