Many would-be home buyers have discovered that credit is increasingly hard to come by. Rising numbers of mortgage defaults and mounting foreclosures are key factors that have forced many lenders to increase their rates, cancel promised loans, and even go out of business.
This is not bad news for all, however. A growing number of investors are taking advantage of the situation to expand their own investment portfolio -- while simultaneously benefiting borrowers -- through private lending. By providing cash leverage at better credit rates or through less-stringent loan qualification requirements, private individuals are filling the gap created by skittish mortgage companies.
