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What Is Private Lender Refinancing?

Private lenders are individuals or companies that provide mortgage financing outside of traditional banks. Unlike banks that focus heavily on credit scores and income verification, private lenders primarily look at the equity in your home. If your property is worth significantly more than you owe, a private lender may refinance your mortgage — even if you have poor credit, inconsistent income, or are already in foreclosure.

How Private Refinancing Stops Foreclosure

1. The private lender pays off your existing mortgage — including all arrears and legal fees.

2. Your foreclosure proceedings stop immediately because the debt to your original lender is cleared.

3. You now have a new mortgage with the private lender — typically a 1-2 year term.

4. During that term, you rebuild your financial situation and eventually refinance back to a traditional lender at a lower rate.

Private Lender vs. Bank: What's Different?

Private Lender

  • Approves based on equity
  • Can fund in 3-10 business days
  • Works with bad credit
  • Flexible on income proof
  • Higher interest rate (8-15%)
  • Short-term (1-2 years)

Traditional Bank

  • Requires high credit score
  • 30-60 day approval process
  • Strict income verification
  • Won't lend during foreclosure
  • Lower interest rate (4-7%)
  • Long-term (25-30 years)

Is Private Refinancing Right for You?

Private refinancing works best when you have significant equity in your home (typically 20-35%+ of the property's value). The higher interest rate is a short-term cost to stop foreclosure and save your home — not a permanent solution. We help you plan the exit strategy from day one.

Learn More About Foreclosure Prevention

Stop Foreclosure All options to halt proceedings Mortgage Restructuring Try your current lender first Sell Before Foreclosure When refinancing isn't the best option Equity Calculator Check if you qualify for private refinancing Alberta Foreclosure Guide Judicial sale timeline and your rights

Find Out If Private Refinancing Can Stop Your Foreclosure

Free assessment — we'll tell you if you qualify and what it would cost.

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