Private foreclosure loans are given out by private lenders to individuals who are in need of a foreclosure bailout loan or who might want to finance a home purchase without proper credit. If you are looking for private foreclosure loans, you might want to ask your bank or lender if they know of any “hard money” lenders.
That’s how they are referred to in the banking industry. The reason they are called hard money lenders is because the terms and conditions by which one obtains money from such lenders is much harder than other types of loans. Soft money, on the other hand has fewer strict conditions and more favorable terms to the borrowers.