Usury Law In Pa.
I want to lend $100,000 of my private funds to a real estate rehabber in Pa. secured by real estate. This amount is about 60% of the ARV. Does anyone know what the max amount I could charge? I read that the usury law in Pa. is 6% but it may not apply in this situation. I also note that other hard money lenders are charging up to 18% per annum plus 5 points. Are the points another way to circumvent the usury laws?
You may need to talk to an attorney to quiet the title to that property.
In order for junior liens to be wiped out in a foreclosure sale a junior lienholder must be mentioned as a defendent and must be served with the papers.
The Quiet Title suit WILL eliminate the junior lienholder, and many times a nominal $500 fee to that lienholder will get you a quit claim from them to you. If they talk to their attorney they will find they cannot win if they contest the Quiet Title action and will be ready to deal.
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Thanks for the reply, do you always have to have an attorney quiet the title if there are junior liens on the property when bought at auction? Anyone else know how to quickly resolve this?
For all you seasoned investors out there, how are the junior liens usually released from Title once the 1st mortgage has forclosed? No one has been able to tell me how the 2nd mortgage along with the other liens are released??? Anyone have experience with this....
in ny when a foreclosing creditor does not notify a junior lienholder of the foreclosure sale, the mortgage is not wiped out....and occasionaly this type of thing does happen .so what they do is a strict foreclosure. in order to cutoff the junior lienholder they notify them that they have x amount of time to redeem and thus to protect their position, if they dont then they get extinguished. The redemption amount is what was sold at auction for.