Hard money lenders have a thorough process for assessing real estate investors, focusing on credit scores, income, experience, and state residency.
States are categorized as judicial or non-judicial, impacting lenders’ decisions due to varying foreclosure laws.
In judicial states, foreclosures involve lengthy court processes, whereas non-judicial states have faster, court-free procedures.
Lenders often prefer non-judicial states for their quicker resolutions, allowing them to reinvest capital sooner.
However, some lenders work in both, taking extra precautions in judicial states and potentially charging higher rates to offset the risk.