Sentences with phrase «if the borrower defaults»

Mortgage insurance is required — protects the lender from a loss if borrower defaults on the loan.

Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults.

These guarantees compensate the lender if the borrower defaults.

The collateral can be seized and sold to repay the loan if the borrower defaults.

A loan where a third party agrees to assume at least part of the debt if the borrower defaults.

The mortgage act allows these lenders to use a registered mortgage, which gives them the power to sell off the property if a borrower defaults.

The implication of no collateral which can serve as security to the lenders is that, if the borrowers default in payment, the lenders stand the risk of losing his money.

They'll also want an appraisal of the home's value and a down payment that guarantees the lender won't lose money if the borrower defaults.

Personal lines of credit are usually unsecured loans, which means that there's no collateral underlying the loan; the lender has no recourse if the borrower defaults.

Credit card debt is unsecured, since the lender has nothing to seize if the borrower defaults.

Most personal loans lack collateral — property that can be taken if the borrower defaults — so they rely on the integrity of the borrower to repay the loan's principal and interest.

Notes are almost always a positive cash - flow investment — even though an interruption to that cash - flow can occur if the borrower defaults.

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.

Fixed term loans are commonly used for large purchases and lenders often demand that the item purchased, perhaps a house or a car, serve as collateral if the borrower defaults.

A secured loan is simply a loan with some collateral behind it that the lender will receive if the borrower defaults.

It can also serve as proof if the borrower defaults and you decide to use it as a tax write - off.

These guarantees compensate the lender if the borrower defaults.

Including a cosigner on a loan decreases the risk for the lender because the lender has another person who is obligated to repay the loan if the borrower defaults.

Private Mortgage Insurance is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults.

The legal right to legal property an owner gives to the lender as collateral for repayment of a debt if the borrower defaults.

The mortgage act allows private lenders to sell the property if a borrower defaults but they can only regain their investment if mortgages that came before are fully paid off.

The mortgage agreement signed by private lenders allows them to sell the property and recover their money if a borrower defaults.

The agreement should also spell out the lender's recourse if the borrower defaults.

With a VA loan, the federal government guarantees that a portion of the loan will be repaid even if the borrower defaults on its terms.

Otherwise, the risks are just too high because if the borrower defaults in the early years of the loan, the lender is stuck with a bad loan.

Specified cash value on a permanent life insurance policy lets the lender access those funds as a loan repayment if the borrower defaults.

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.

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

A co-signer for a business loan is someone who guarantees that loan will be paid if the borrower defaults on the loan.

They will be legally responsible for paying the money back if the borrower defaults on any payments.

Entitlement is basically the dollar amount the VA pledges to repay if the borrower defaults.

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.

An unsecured loan, like a low - interest personal loan, is very difficult to recover if the borrower defaults, and a costly, time - consuming lawsuit is usually the only recourse open to the financial institution.

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.

Just because a loan is unsecured, that doesn't mean lenders are powerless to collect if a borrower defaults on the loan.

Fannie Mae and Freddie Mac encourage home ownership by purchasing mortgages on the secondary market, securitizing them, and reselling them to investors with the implicit guarantee that the government will reimburse investors if borrowers default on the mortgages.

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.

Without collateral — such as a car or a home — backing up the loan, there isn't much you can do if your borrower defaults besides report their default to the credit bureau once their payments are 150 days past due.

The depth of experience of a reputable mezzanine financing provider can be advantageous for senior lenders, especially if the borrower defaults.

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.

Although peer - to - peer loan sites help evaluate risk for the lender, it's important to keep in mind that these loans are unsecured, so if the borrower defaults, you lose your investment.

The lender can acquire these assets if the borrower defaults on the loan.

When Fannie and Freddie buy loans, they assume the majority of the risk if a borrower defaults on their mortgage.

Payday lenders, who generally require a signed post-dated check from a borrower as a loan condition, deposit the check if the borrower defaults.

A type of loan secured by collateral such as property or shares, where if the borrower defaults the lender can only seize the assets put up as collateral for the loan.

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.