Bought with hard money...

[Scott Karg]

I just bought a property with hard money, terms are 6 month maturity with a 3 month extension if needed.
I'm just wondering what happens IF I don't find someone to refi the property.
The numbers work great on this property, even with hard money.

[Jon Holdman]

I take it you intend to refi and keep this property. If you can't refi, you will need to give the property to the lender. You would typically do this by doing a deed in lieu of foreclosure that transfers ownership of the property from you to the lender. You quickly and quietly walk away.

If you choose to fight it, then lender will foreclose, the same as any other lender. This will be expensive for the lender, and all of those costs will be added to what you owe. Rest assured the lender will not offer you a loan modification or a short sale. Also rest assured that if there is any shortage, the lender will pursue a deficiency judgment against you, and will try to recover the shortage. This will end up showing up on your credit report.

Many HMLs how are requiring you to have some cash in the deal. This typically required up front, i.e., at the purchase closing. Don't expect to see any of that back if you can't make the deal work.