Finance
In Michigan, 'private lending' (hard money loans) differs from traditional bank mortgages because:
APrivate lenders are regulated by the same rules as banks
BPrivate lenders typically focus on the property's value as collateral and charge higher interest rates, with shorter terms and less bureaucracy✓ Correct
CPrivate loans are always interest-free
DPrivate lenders cannot take a security interest in Michigan real property
Explanation
Hard money/private loans in Michigan are asset-based, short-term loans from non-bank lenders that focus on the property's value rather than the borrower's creditworthiness. They feature higher interest rates and fees but faster closings, used by investors for fix-and-flip projects.
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