Sentences with phrase «seize if the borrower defaults»

Most personal loans are unsecured loans, which means they have no collateral that the lender can repossess or seize if the borrower defaults.

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

Not exact matches

If banks take deposits and hoard cash, the economy could contract, and if banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize uIf banks take deposits and hoard cash, the economy could contract, and if banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize uif banks lend without regard for the borrower's ability to repay, high defaults could cause credit to seize up.

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

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.

This is beneficial to you as the borrower since it speeds up approval time and you don't have to put up an asset the lender can seize if you default.

Non-recourse means if a borrower defaults on the loan, the issuer can seize the home asset, but can not seek any further compensation from the borrower — even if the collateral asset does not fully cover the full value of 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.

If the borrower defaults on their payments, the lender then has the right to seize the lien as collateral (foreclosure).

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.