A hard bread loan is a species of firm estate loan collateralized against the quick-sale value of the belongings for which the Hard Money Lenders loan is made. Most lenders fund in the first lien position, meaning that in the coincidence of a default, they are the first creditor to receive remuneration. Occasionally, a lender will subordinate to another first lien location loan; this loan is known as a mezzanine loan or second lien.
This is the mess a lender could reasonably expect to realize from the sale of the claim in the chance that the loan defaults and the goods must be sold in a one- to four-month timeframe. This value differs from a general store amount appraisal, which assumes an arms-length transaction in which neither buyer nor seller is acting under duress.