Legal Question in Real Estate Law in California

Re: hardmoney lenders

If you're dealing with hard money lenders, you've answered your own question.

Re: hardmoney lenders

It's obvious...if you owe a lot of other people who have first crack at your "equity". the lender wants to know...also, "equity" is not a concrete or finite thing and is based upon appraisals which may or may not be accurate. People thought they had equity at the top of the market and it was fictional. If the lender goes to collect on the loan because you don't pay, he wants to know what other assets you own and can seek to go after them if the property is not worth the amount of unpaid debt.

Re: hardmoney lenders

Furthermore, there is a difference between "need" on the one hand, and "want" or "demand" on the other. The lender gets to call the shots. It may not "need" a 1003 in its file, but if it decides to make these kinds of disclosures a requirement, it can certainly condition its willingness to lend upon your furnishing the information over your signature and with your warranty of its accuracy.