Sentences with phrase «loan if the borrower defaults»

The co-signer doesn't just sign on the loan, he or she is making a promise to repay the loan if the borrower defaults.

Unsecured loans are not secured by collateral, and lenders have a more difficult time recouping their losses for these loans if a borrower defaults.

Loans lacking valuable items as collateral, usually real estate or a late model vehicle, to secure a loan if the borrower defaults are called unsecured...

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

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.

The co-signer, who is typically a close friend or relative of the student, is legally obligated to repay the loan if the borrower defaults.

Not exact matches

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 borroLoans 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 borroloans under an income - driven repayment plan (where the payments are based on the income of the borrower).

Jeffrey Naimon, an attorney at BuckleySandler, said banks are punished enough if a loan defaults because the ability - to - repay rule allows borrowers to sue a lender for alleged underwriting mistakes.

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

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 month.

If you do not make any payments on your defaulted loan (s) prior to consolidating them, you will be required to sign - up immediately for one of the alternative payment plans available to all federal student loan borrowers.

This myth could also be problematic for the 12 % of borrowers who don't realize the government can garnish your wages if you go into student loan default.

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.

Unlike other loans, student loan defaults stay on a borrower's record for life, even if bankruptcy is filed.

For example, if a borrower defaults on their mortgage, Fannie and Freddie are responsible for the losses on the loans they guarantee to investors, while Ginnie Mae is financially responsible for the bond payments to the holders of Ginnie Mae securities.

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 borrower defaults or can't afford to repay a loan, a lender loses money.

«If the main borrower makes late payments or defaults on the loan, this can negatively impact both of your credit scores.

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

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).

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.

Unlike other loans, student loan defaults stay on a borrower's record for life, even if bankruptcy is filed.

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.

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.

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

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 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.

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

Since investors» money and risk of loss is directly tied to an individual borrower, it could present the borrower with an unsafe situation if they were to default on a loan with their identity or personal details known.

A mortgage or auto loan is a secured loan, because if the borrower defaults or the debt goes to collections, the bank can repossess the asset tied to the loan — a house or a car — and resell it.

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.

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.

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.

If a borrower defaults on a personal loan, the bank can not take the borrower's assets.»

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.

«Those who have criticized low - down payment lending as excessively risky should know that if the past is a guide, only a narrow group of borrowers will receive these loans, and the overall impact on default rates is likely to be negligible.

On the part of the borrower, you may be asked for the immediate repayment of your loan balance if your loan enter default and your cosigner is dead or has become bankrupt.

This allows the banks to get closer to break even if the borrower defaults on the loan.

A provision which requires that the remaining balance due be paid if the borrower defaults on the loan or transfers title to another party.

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.

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

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.

Cosigner A cosigner on a loan is a coborrower and is obligated to repay the debt if the primary borrower defaults on the debt.

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 the borrower misses several payments, the loan goes into default.