Sentences with phrase «assets if the borrower defaults on the loan»
Not exact matches
If a borrower defaults on a personal loan, the bank can not take the borrower's assets.»
http://www.guidetolenders.com/
This means that if the borrower defaults on the loan the lender will have a claim on any assets but after secured creditors.
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.
It's important to be aware that if a borrower defaults on an unsecured loan, it is still possible for a lender to seize assets to recover their losses.
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.
If the borrower defaults on the loan, the creditor can take the asset.
Recourse — If the borrower defaults on a loan, the borrower pledges all of their other assets to repay the loan.