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Hard money lenders would consider lending to these people if they can be assured that, if the loan goes into default, they can sell the house, pay off the first mortgage and still earn a profit.
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Should parents pay off $200,000 in law school loans for a son who ended up in rehab? – Such was the case for a mother who emailed me about the desire she and her husband had to help their son recover financially. The backstory: Their son went to law school. He paid some of his education.
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Hardmoney Investors Hard money loan – Wikipedia – A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans, starting at 7.7%,  because of the higher risk and shorter duration of the loan.