Sentences with phrase «money if the borrower defaults»

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.

Not exact matches

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

Therefore if more of the proceeds are with the borrower for a longer period of time, there is a greater risk of default and a longer present value of money impact.

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.

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.

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.

FHA insurance provides an incentive for lenders to loan money to individuals without requiring additional cash for a bigger down payment or significant personal cash reserves because the agency's insurance will pay the lenders if the borrowers default.

If lenders sell non-QM loans, and the borrowers default, lenders are less protected from lawsuits and «buybacks,» having to refund the investors» money.

HUD pays claims to lenders if homeowners default, using money from the FHA insurance fund, which is money pooled from borrower - paid mortgage insurance premiums and payments.

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.

If a property is sold as the result of a mortgage default, but the sale does not generate enough money to pay the outstanding balance and all associated costs, fees and interest, the insurer will pay the shortfall to the bank and will then have the right to enforce against each borrower personally for the deficiency.

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.

Borrowers can obtain money, even if they have defaulted on past loans or have outstanding debt.

Advocates for programs that allow borrowers to repay loans based on income hope these programs will cut default rates because if you're not making money, you don't need to repay your 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.

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.

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.

If the borrower defaults on payments, they must either reborrow the money or risk losing their vehicle.

First, it is true that if a borrower defaults on a loan, you lose money as a lender.

As far as the government is concerned, if a borrower chooses to ignore the options available and go into default, the money they do make is fair game for garnishment.

Indeed, if you fund Kiva loans with a US Bank Flexperks Travel Rewards card, all you have to pay for your revenue tickets is the time value of your money and the risk of your Kiva loans defaulting (which can be substantially mitigated against by carefully choosing your loans and diversifying your loans across borrowers and countries).

Banks are typically averse to underwriting non-recourse loans as it means assuming more risk on their part as this type of loan only allows them to foreclose on the property in the event of a default, and does not allow them to seek additional money from the borrower if the proceeds from the foreclosure are less than what is owed on the loan.

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.

If the purchase money loan for any type of real property is financed by the seller and secured by that same property, the lender / seller may not obtain a deficiency judgment against the defaulting borrower / buyer..