As one of the most famous hard money lending companies kennedy funding complaints has received its fair share of acclaim and controversy. Though the company provides itself as a source of funds for real estate, the complaints from the borrowers are some issues that should be given attention to. In this particular article, readers will be given thorough discussion of basic complaints, understanding of hard money lending as well as useful information for borrowers.
What is Hard Money Lending?
A hard money loan is a very short-term type of financing more commonly associated with real estate. Unlike the usual loaning procedures that involve credit scores, credit reports and other paperwork that might take a lot of time to process, hard money loans are property based. This makes them ideal for stuff like flipping a house or closing down deals within the shortest time possible.
This is the niche where Kennedy Funding works, offering commercial real estate, land acquisition, and even cross-border financing. Like any other financial service provider, not all customers have had good things to say about us.
The Most Popular Kennedy Funding Complaints
Some of the borrowers have complained about many things that took place concerning Kennedy Funding. Let’s take a closer look at the recurring issues:
Lack of Transparency
A few borrowers indicated that loan terms and fees were not well explained before they were signed up. This led to complication and frustration, especially when additional costs are incurred at some later stage.
Delayed Communication
Some of the most common complaints are with regard to the response time or the lack of updates when it comes to loan processing. To the borrowers who have deadlines on their hands, such a change can be the dawning of the year for them.
Surprise Fees
Some people said that they only got to know other charges much later according to their testimony. One again, fee transparency serves as a notable foundation for establishing trust because it will not allow clients to hide the details of their spending from them.
Loan Rejections after Approval
The next important concern by borrowers is delayed credit and this includes receiving an approval only to have the loan withdrawn back. This puts borrowers in a fix looking for other options and creates an extra burden in their budgets.
Notable Cases and Allegations
Kennedy Funding has faced legal challenges that bring these complaints into sharper focus:
Omni Credit Alliance Lawsuit
In a more popular case, Omni Credit Alliance sued seeking refund of commitment fee of $260,000 for a deal that was never completed. They breed doubt as to the company’s operations, even among its most loyal clientele.
Dan Keener’s Legal Action
In this case, the violation of the Unfair Trade Practices and Loan Brokers Acts was also claimed. Fraud and the primary issues were advance fees and lack of transparency.
This paper seeks to discuss Vladimir Isperov’s Fraud Allegations.
But there is still bad news – in 2020, the company became involved in a fraud case, which created serious doubts about its activities. These allegations should serve not only to remind everyone of the value of clear and unambiguous labels and of specific promises when engaging in financial transactions.
Why do these complaints happen?
Understanding the root causes can help borrowers navigate the challenges of hard money lending:
- Industry Practices: The use of hard money lending can be risky and expensive, a fact that the generally unprepared borrower may not know.
- Borrower Expectations: There are situations where the borrower may not comprehend the requirements due to which there is frustration sometimes.
- Regulatory Gaps: aAs compared to the regular banking practices, the industry is not so highly regulated, thus enhancing the number of contentious issues in the hard money lending business.
Kennedy Funding’s Response
Thankfully, Kennedy Funding has made some of these claims in public with attempts to explain them. The company however stated that it has enhanced its transparency as well as its customer relations. Yet borrowing experiences depict that there is still a long way to travel in regaining that trust among borrowers.
Tips for Borrowers
If you’re considering a loan from Kennedy Funding—or any hard money lender—keep these tips in mind:
1. Research Thoroughly
It is important to read any clause for any agreement you are going to sign. Further to this, make sure that if there is something that you don’t understand, you question it as much as you need.
2. Consult Professionals
Get a financial or legal counselor to peruse your loans documentation. To lack their knowledge is to be prone to making costly errors as a business owner.
3. Explore Alternatives
It is very important to note that hard money loans are not your only available option. If you still have this problem and cannot find suitable payment options, it is better to turn to traditional loans or other types of financing.
Conclusion
Hard money lending has not declined over the years, and Kennedy Funding is relatively active in the sector, but clients have complained of various issues. There are challenges borrowers could not ignore starting from transparency issues to shut down in communication. In essence, this means that the profile of borrowers should be aware of risks resulting from taking loans, and be in a position to ask the right questions, and consider other best options of assistance.
To any person that commits to engage into hard money lending, the secret is preparation. Of course, this is something that Kennedy Funding, being a lending company, has in good measure and it is for the borrowers to determine the best course of action.
