Hard Money Loan? Can someone explain?

[DramaMama]

Hello everyone.

We are past due on our mortgage since July. It is an interest only on $447. We filed for Chap 7 but it was dismissed, long story. So no discharge, just dismissed. Credit is still decent actually. We contacted our mortgage lender to attempt a loan mod and they referred us to a hard money lender that they work with.

We talked to the hard money lender today, Ameripath. But I need to get my head around this. What he said was that we pay for one year, about $1700, and then at the end of 1 year of positive payments, we can re-fi through FHA, etc. He said regarding the 1 year payments "I can get your principal balance reduced, for sure"....but I just need to understand what this is. I mean, I will ask him when he calls back (he is speaking with the investor) but for now - anyone know what it is they are doing with the loan? Will I still have my current lender? What happens to the loan for the year? And this "hard money" loan is it basically an unsecured loan?

Lost.

Thanks.