Sentences with phrase «back if the borrower defaults»

+ read full definition in the property to pay investors back if the borrower defaults and the property needs to be resold.

Not exact matches

FHA loans are guaranteed by the government, so that the lender is paid back with federal funds if the borrower defaults.

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 bacIf 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 bacif the borrower defaults on the loan, then you are responsible for paying it back.

From the lenders perspective, a secured loan has a safety net to fall back on if the borrower defaults.

For example, a government - backed loan in default can subject the borrower to an administrative wage garnishment (that is, a garnishment without the creditor first obtaining a court judgment) of 15 % of disposable income, and this would be in addition to any state law garnishment by another creditor (under New York law, of several creditors have judgments against a debtor, only one at a time can garnish 10 % of wages, but a government student loan can be imposed on top of a state law garnishment.A borrower can also lose tax refunds if in default on a government student loan.

Since home loans are backed by a borrower's real property, a predatory lender can profit not only from loan terms stacked in his or her favor, but also from the sale of a foreclosed home, if a borrower defaults.

The U.S. government sponsors these loans and will pay these loans back to the mortgage institution if the borrower defaults under certain conditions.

If the auction gives more money than the loan is worth, the lender has to give the remaining money from the loan difference back to the borrower that defaulted on the loan.

If a borrower is in danger of defaulting on their debt, a restructured auto loan agreement can be helpful for getting their finances back on track.

if a borrower defaults, after all, they recoup some money from mortgage insurers or in some cases by forcing originators to buy back the loan.

Annaly and American Capital Agency, for instance, invest in agency mortgage - backed securities, which come with an implicit guarantee against default — meaning if the borrowers stop paying, they are reimbursed for the difference.

If the borrower defaults in payment, the lender can simply fall back on the collateral.

Forbes contributor Mark Greene explained if lenders follow this «ability - to - repay rule» and demonstrate they did everything they could to determine a borrower was reliable, they won't have to buy back the loan even if the borrower defaults.1 The more proof a lender has that he or she did everything possible to make sure the borrower was in good financial standing, the more protected that lender will be.

If you are required to contribute, the FHA program requires that borrowers are in default by the time the sale closes - so another way to think of the cash contribution is just giving back one or two of the mortgage payments that were missed.

This program is backed by USDA, and as with FHA, the loans generally are offered by private lenders who will be reimbursed if the borrower defaults.

Similarly, no available data allow policymakers to evaluate the effectiveness of economic hardship deferment or voluntary forbearance — two options that allow borrowers to temporarily stop payments — or to determine if these options help individuals get back on track or are simply waypoints to default.22

If a borrower defaults on their FHA loan, the FHA pays the bank back what it lost.

FHA loans are backed by the government, which guarantees that the lender won't be left high and dry if the borrower defaults.