My friend begged me for a loan to rescue his foreclosed home. My name is on the new title as a private lender with his girlfriend as buyer
buying back from the bidder (RE agent). The foreclosed house will be sold for girlfriend again for $450K. Girlfriend was denied by bank/lender for some reasons. I need to lend her 80% with interest rate of 10% until she refinance from other financial institution in few months to close the private loan with me. Does my friend's suggestion workable? Is the private loan legal? Am I be secured enough as a lender? If she default in monthly payment or can not get the refinance approved, how can I get my money back? I want to help really not for benefit. Please answer and give opinion. Thanks!