Sentences with phrase «lenders if the borrowers defaulted on the loans»

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.

Not exact matches

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 a borrower defaults on his or her car loan, then the lender will repossess the car to try to recover the money it lost on the car loan.

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

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.

While the VA guaranty inspires confidence, lenders are still on the hook for 75 percent of that loan if the borrower defaults.

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

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

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

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.

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

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

If you default on such a loan, the lender can take the collateral so such loans can be risky for borrowers.

Created by the Federal Housing Administration, these loans are insured by this government agency, so that guarantees that lenders won't lose their money if borrowers default on their mortgage.

Some lenders have been known to charge borrowers 50 % interest or more, and higher rates if they default on 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.

This can be done by way of loan products that require mortgage insurance that covers the lender if the borrower should default on the loan.

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.

The result can be disastrous because lenders fully expect the co-signer to pay the full balance on the loan if the primary borrower defaults.

Private Mortgage Insurance (PMI) is a part of the loan payment and protects the lender if a borrower defaults on a home loan.

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.

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.

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.

Borrowers certainly don't enter any long term mortgage agreement with the full intent of defaulting on the loan and lenders wouldn't issue any mortgage if it was clear the borrowers had no desire to keep tBorrowers certainly don't enter any long term mortgage agreement with the full intent of defaulting on the loan and lenders wouldn't issue any mortgage if it was clear the borrowers had no desire to keep tborrowers had no desire to keep the house.

If the borrower defaults, the lender gets to keep all the money earned on the initial mortgage and all the money earned on the home - equity loan; plus the lender gets to repossess the property, sell it again and restart the cycle with the next borrower.

The reverse mortgage called the Home Equity Conversion Mortgage (HECM) and traditional FHA loans are both federally insured, and require that borrowers pay a mortgage insurance premium in order to decrease risk to lenders if the homeowner defaults on the loan.

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.

But VA lenders can and do enact their own, stricter requirements beyond what the VA mandates, which makes sense considering lenders are on the hook for 75 percent of the loan if the borrower defaults.

If a borrower ever defaults on their loan, the lender can reclaim the property.

Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss 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.

That means the agency reimburses mortgage lenders if borrowers default on VA home loans.

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

Lenders are often more willing to lend higher sums to consumers if the loan is secured by collateral because they have something tangible to repossess or foreclose on if the borrower defaults, according to Andrew Chan, a financial adviser at Locker Financial Services, LLC in Little Falls, N.J. Because this is a lower risk for lenders, they may also be more willing to forgive lower credit Lenders are often more willing to lend higher sums to consumers if the loan is secured by collateral because they have something tangible to repossess or foreclose on if the borrower defaults, according to Andrew Chan, a financial adviser at Locker Financial Services, LLC in Little Falls, N.J. Because this is a lower risk for lenders, they may also be more willing to forgive lower credit lenders, they may also be more willing to forgive lower credit scores.

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

PMI is a specialized insurance policy provided by private insurance companies that protects a lender from financial loss if a borrower defaulted on their loan.

(Private Mortgage Insurance) PMI is a specialized insurance policy provided by private insurance companies that protects a lender from financial loss if a borrower defaulted on their loan.

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

If the borrower defaults on the loan, the tokens used as collateral are transferred to the lender.

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.

Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won't lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans.

Private mortgage insurance (PMI) is an actual insurance policy that the lender takes out to protect themselves if the borrower defaults on the loan.

The most common reasons for accelerating a loan are if the borrower defaults on the loan or transfers title to another individual without informing the lender.

The Federal Housing Administration insures loans for FHA - approved lenders, like Compass Mortgage, to reduce their risk if a borrower happens to default on their mortgage.

This clause outlines how the lender can foreclose on the property if the borrower stops paying the mortgage, also known as defaulting on a home loan.

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