Sentences with phrase «if the borrowers default in»

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.

If the borrower defaults in the payment of the debt, the trustee may sell the property without legal proceedings.

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

If the borrower defaults in the payment of the debt, the trustee may sell the property without legal proceedings.

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.

Not exact matches

Borrowers can quickly find themselves in a default situation if they discover at the end of a billing cycle that they don't have enough to cover the entire balance.

Loans that have been in default can be consolidated after three consecutive monthly payments have been made or if the borrower agrees to repay the consolidation loans under an income - driven repayment plan (where the payments are based on the income of the borrower).

If it is mainly the highest - risk borrowers who take advantage of higher limits, or if the higher limits encourage more reckless borrowing in general, then default rates will climb, eating away at profit marginIf it is mainly the highest - risk borrowers who take advantage of higher limits, or if the higher limits encourage more reckless borrowing in general, then default rates will climb, eating away at profit marginif the higher limits encourage more reckless borrowing in general, then default rates will climb, eating away at profit margins.

The CFPB issued a consumer advisory in April 2014 warning borrowers of provisions that may lead to default even if the borrower is current on payments.

If a loan is in default, the borrower can only consolidate the loan under two conditions: the borrower must agree to repay the loan under an income - driven repayment plan, or make payment arrangements with the current loan servicer.

In most cases, loans are considered in default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a montIn most cases, loans are considered in default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a montin default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a month.

If the borrower misses any payments or defaults on the loan, these will also appear on the cosigner's credit history and may impact their ability to qualify for loans in the future.

A loan is considered defaulted if the borrower fails to repay it on the terms that were agreed to in the loan contract.

That said, if you're already in default and unable to rehabilitate your loans, Student Loan Borrower Assistance illustrates a few settlement options:

If the student defaults on the loan, the cosigner will be held liable for the remaining loan payments, and his or her credit history may be affected (in addition to the borrower's).

If a loan is in default, the borrower can only consolidate the loan under two conditions: the borrower must agree to repay the loan under an income - driven repayment plan, or make payment arrangements with the current loan servicer.

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

Think about it — if you invest in only 4 different loans and one borrower defaults, you've likely suffered a huge loss.

In some cases, lenders require a «personal guarantee» from small business owners — a written promise that the borrower's personal assets can be seized if the company defaults on their debts.

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.

Under the Ontario Mortgage Act, the private lender will sell property in default to recoup if a borrower was unable to pay agreed mortgage fees.

If a borrower is considered in default on a loan, the lender may demand immediate, full repayment.

Originating lenders can be held responsible for repayment of a mortgage, generally in two cases: First if the borrower quickly defaults, say within 120 days.

Default As related to student loans, the status of a loan if a borrower fails to make several payments in a row, or if he or she violates the terms and conditions of the loan agreement.

But, if the repayment terms are not good then the cost for the borrower can be exorbitant, pressure to meet repayment schedules can be high, and in the end the loan may be defaulted on.

«Lenders may make exceptions to this rule for borrowers in default on their mortgage at the time of the short sale if

If you believe that your loan was incorrectly placed in default, you should first consider whether you have met all of your responsibilities as a borrower.

In particular, if a borrower finds that they might default, a private lender may consider extending the repayment term in order to lower the monthly paymentIn particular, if a borrower finds that they might default, a private lender may consider extending the repayment term in order to lower the monthly paymentin order to lower the monthly payments.

By now, many student loan borrowers have learned the hard way that the federal government will take their tax refund, including Earned Income Tax Credits (EITC), if they are in default on a federal 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.

If you believe that you've met all of your responsibilities as a borrower and that your loan was placed in default in error, you must contact your loan holder and provide evidence that your loan should not be in default status.

If the borrower misses any payments or defaults on the loan, these will also appear on the cosigner's credit history and may impact their ability to qualify for loans in the future.

Lenders will send the borrower a notice of default when the loan is at least 15 days in default, if the default is not corrected the borrower will then receive a statement of claim outlining the terms required to bring the mortgage into good standing.

In case of default, the lender goes after the buyer who assumed the loan and — if that buyer can not pay off the debt — the lender then goes after the original borrower.

Congress mandates that the insurance premiums the agency collects must be kept in a reserve fund that the FHA uses to pay lenders if a borrower defaults on an FHA - insured loan.

Columnist Kathleen Pender wrote recently in the San Francisco Chronicle that approving FHA mortgage loans for borrowers who have outstanding debts in collection could increase taxpayer risk if these loans default and FHA doesn't have enough in its reserve fund for reimbursing lenders» losses.

The mortgage company can only foreclose if there is a default in payments, a failure to pay property taxes, a failure to maintain insurance, or if the borrower / debtor is damaging the property intentionally or recklessly.

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.

If the value of the property can not be sufficient to pay off the mortgage in case of default on the part of the borrower, then the purpose of using the property as collateral is defeated.

In most cases, loans are considered in default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a montIn most cases, loans are considered in default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a montin default when borrowers have not made a payment for 270 days if they pay monthly or 330 days if they pay less than once a month.

Another CFPB report found that private student lenders and servicers placed borrowers in default when a co-signer died or filed for bankruptcy, even if the loan was in good standing.

This can generally be done if the borrower fails to make loan payments and the loan is in default.

In July 2015, the Department clarified that guaranty agencies are not allowed to charge these fees if the borrower enters into a rehabilitation repayment agreement within 60 days after notice of default.

Please don't put all the blame on the borrowers — the banks are at fault as well and all they care about is that bottom line — and also if you default — the bank gets to discharge your debt and can claim in on their taxes as a loss there by still making money off you.

Effective July 1, 2010, borrowers who are in default may consolidate into the Direct Loan program immediately (without any payments prior to consolidation) if they agree to repay the debt using income - contingent repayment or income - based repayment.

If you acquire a FHA Loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.

If the borrower does not act in accordance with the covenants, the loan can be considered in default and the lender has the right to demand payment (usually in full).

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

FFELP lenders encourage borrowers to pursue deferments and forbearances as an alternative to default in part because the accrued but unpaid interest in paid as part of a default claim if the borrower ultimately defaults.