Behind on payments, working through a loan that’s gone into default, or a lien on the property? A bail-out loan is private financing secured by your equity, structured around your situation rather than a single fixed program.
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What a Bail-Out Loan Covers
Straight Answers
It’s private financing secured by the equity in your property, structured around your specific situation rather than a single fixed program. Depending on your circumstances, it may resolve arrears, reinstate a loan that’s gone into default, or pay off a lien. Outcomes vary and aren’t guaranteed — every file is underwritten on its own.
Speed is the whole point of a bail-out loan, so we move as fast as the file allows. We can typically review your equity position and situation the same day you call, which matters when there’s a deadline attached — a reinstatement period, a payment due date, or a scheduled sale. Actual closing time depends on your specific file, and we’ll tell you upfront whether your timeline is realistic before you commit to anything.
There’s no fixed public minimum. Equity is the central factor in a bail-out loan, but how much you need depends on the amount required, the property’s value, and everything already owed against it, including any liens. We’ll tell you plainly during the equity review whether your position supports a fix — and if it doesn’t, we’ll say so rather than string you along.
It depends on how the loan gets structured. In some cases a bail-out loan sits behind your existing mortgage; in others it pays off or reinstates the loan causing the pressure in the first place. Which structure fits your situation is worked out during underwriting, and we’ll walk you through exactly what happens to your existing loan before you sign anything.
Yes, but it’s one factor, not the deciding one. Most people who need a bail-out loan already have some credit impact from whatever brought them here — missed payments, a default, a lien — and we weigh that against your equity, the property, and your exit strategy. Equity carries real weight here, but any lender telling you credit doesn’t matter isn’t being straight with you.
They vary by product and situation, and they’re disclosed in writing before any commitment. Private money costs more than a bank loan. That’s the trade for speed and flexibility. We’ll show you the real numbers before you decide anything.
The two overlap. If you’ve received a formal Notice of Default, our Pre-Foreclosure page walks through that specific timeline. A bail-out loan is the broader tool behind it — it also covers earlier-stage arrears, a private or hard money loan that’s matured or gone into default, or a lien, whether or not a formal foreclosure filing exists yet.
We’ll tell you quickly, and where we can we’ll point you toward what would actually help. If you’re facing foreclosure, free counseling is available from a HUD-approved housing counselor at hud.gov/findacounselor or (888) 995-HOPE.
The Process
A short conversation costs nothing and may open options you didn’t know you had.
Start the Conversation → or call (818) 937-9987Locations: California, Nationwide
Michael Daniel Investments, Inc.
417 Arden Ave, Suite 121A, Glendale, CA 91203
California Department of Real Estate DRE# 02037255 and NMLS# 233991.