Sentences with phrase «borrowers default on a loan»

Because its purpose is to reduce risk to lenders, mortgage insurance is priced to reflect the relative danger of the borrower defaulting on the loan.

For instance, when they lend out money, they buy insurance in case the borrower defaults on a loan - it's called a credit default swap.

Roughly ten percent of student borrowers default on their loans within two years of graduating, despite often being eligible for more favorable repayment terms under a variety of alternative repayment options such as income - driven repayment.

Borrowers with FHA loans for mortgage insurance protecting the lender from loss in case borrowers default on the loan.

Accordingly, cosigners are treated by lenders and servicers the same as the primary borrower, and can even be sued if the borrower defaults on the loan.

If the borrower defaults on the loan, the lender can seize and sell collateral in order to recover its money.

If you're considering cosigning a loan, it's essential that you understand the key risk involved: if the borrower defaults on the loan, then you are responsible for paying it back.

If the borrower defaults on their loan and there isn't enough equity in the home to cover what is owed on the mortgage, private MI is there to offset the loss.

In the event that the borrower defaults on the loan, the co-signer will basically be taking the place of the borrower by making the monthly payments or by paying off the loan completely.

Secured loans are loans with collateral provided as a form of compensation should the borrower default on the loan.

The lender is protected if a borrower defaults on the loan, and the borrower is protected if the lender goes out of business or the loan balance exceeds the value of the home.

Usually, the security is taken by the lender in the event the borrower defaults on the loan.

Premiums for private mortgage insurance, which protects a mortgage lender in the event a borrower defaults on their loan, can be written off on a federal tax return.

This allows the banks to get closer to break even if the borrower defaults on the loan.

A provision which requires that the remaining balance due be paid if the borrower defaults on the loan or transfers title to another party.

The reason for this is relatively obvious: the lender wants assurances regarding a property's value in the event that the borrower defaults on the loan and the lender gets stuck with the property.

Private mortgage insurance (PMI)-- Protects the lender against a loss if a borrower defaults on the loan.

The holder may be the bank that issued the loan, a secondary market that purchased the loan from the bank or a guarantee agency if the borrower defaulted on the loan.

Foreclosure is the legal process that allows a lender to seize and later sell property used as collateral for a loan because the borrower defaults on the loan.

After all, confidence is the key to the green light, with fears of the borrower defaulting on the loan suitably lifted.

This means that if the borrower defaults on the loan the lender will have a claim on any assets but after secured creditors.

Scores that go below 620 are generally considered to be sub-prime by lenders, meaning that the risk of the borrower defaulting on the loan is the greatest.

Additionally, government insurance programs like FHA ensure that lenders get paid, even if a borrower defaults on the loan down the road.

In this program, the federal government protects the private lender should the borrower default on the loan.

When a borrower defaults on a loan, the entire unpaid balance is immediately due, rather than only the monthly payment.

Private lending institutions that offer mortgages use PMI to protect themselves from a loss in the event a borrower defaults on their loan.

If a borrower defaults on the loan, the creditor's remedy is to repossess the solar panels and then resell them.

If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

Non-recourse means if a borrower defaults on the loan, the issuer can seize the home asset, but can not seek any further compensation from the borrower — even if the collateral asset does not fully cover the full value of the loan.

Mortgage insurance — An insurance policy paid for by either the borrower (PMI) or lender (LPMI) that protects the invested party in the event that the borrower defaults on the loan.

By lending to risky borrowers, the companies are assuming larger amounts of risk that can lead to financial problems if the borrowers default on their loans.

Many of these borrowers defaulted on these loans, but many of these borrowers continued to make their home equity loan payment and find themselves stuck with a 2nd mortgage.

In the event that the borrower defaults on the loan, he or she agrees to give up that collateral in order to pay off the debt they've incurred.

The secured nature of the loan means if the borrower defaults on a loan then the lender has a means to recoup part or all of the outstanding balance by seizing and then selling the asset.

When deciding who to lend money, traditional financial institutions focused on minimize incidents of borrowers defaulting on their loans.

Proponents of the law say that it is in the best interest of the taxpayers who will be stuck footing the bill if borrowers default on their loans.

The lender runs very few risks, so in case the borrower defaults on the loan, he will not loose much.

PMI protects lenders against loss in case borrowers default on their loans.

Extended on credit, unsecured debt presents a higher risk to a lender since - in the United States - there are no debtor's prisons and if a borrower defaults on a loan, there is little that a lender can do about it except seek costly legal action and report to the credit reporting agencies.

Secured loans, backed by an asset such as a house or piece of property, give the lender the ability to repossess collateral should the borrower default on their loan.

It's still unclear how much investors will lose during a default because PeerStreet still hasn't had a borrower default on a loan.

If a borrower defaults on a loan, the automobile may be repossessed but LoanMart will work with you if contacted ahead of time

Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

Another reason for differentiating APR is the rate at which borrowers default on their loans.

These figures also do not reflect the fact that each year nearly 100,000 borrowers default on their loans for a second time.5

While the borrower pays the premium — which can add thousands of dollars to the cost of buying a home — the insurance actually protects the lender if the borrower defaults on the loan.

First, it is true that if a borrower defaults on a loan, you lose money as a lender.

And if the borrower defaults on the loan, it can destroy your credit — showing up as a default for you, too.

Further, when borrowers default on their loans, everyday activities like signing up for utilities, obtaining insurance, and renting an apartment can become a challenge.

The insurance protects the lender (not the borrower) if a borrower defaults on the loan.