Sentences with phrase «to repossess the collateral»
"To repossess the collateral" means to take back or reclaim the possession of an item or asset that was used to secure a loan or debt, typically because the borrower has failed to make required payments. Full definition
In regards to a consumer purchase, if a debtor is unable to provide the proper payments for their purchase, then the creditor can repossess collateral such homes and cars...
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With secured debt, a creditor can often repossess the collateral if a consumer fails to make payments, and hence the interest rates are lower.
Lenders price money more expensively when they can not easily repossess collateral.
In regards to a consumer purchase, if a debtor is unable to provide the proper payments for their purchase, then the creditor can repossess collateral such homes and cars that are on loans.
Although a liquidation case can rarely help with secured debt (the secured creditor still has the right to repossess the collateral if the debtor falls behind in the monthly payments), the debtor will be discharged from the legal obligation to pay unsecured debts such as credit card debts, medical bills and utility arrearages.
If you default, the creditor may be able to repossess the collateral.
Lenders can repossess the collateral (your home, boat, or car) if you default, without going to court first.
Lenders more readily approve secured accounts, as they can repossess the collateral to offset losses in the event of default.
Secured financing is safer for the lender, as they can repossess the collateral (your mode of transportation) to offset any losses without suing in court first.
However, lenders will have the right to repossess the collateral, should you fail to pay your debts.
By signing, you agree that if you default on the loan, the secured creditor can both repossess its collateral AND sue you for the balance due on the loan.
If a borrower defaults on his / her loan, the lender can repossess the collateral to recover its losses.
If a debtor does not reaffirm the debt, the amended Code allows a secured lender to repossess collateral, even if the debtor is current on payments.
In most cases, when collateral is present, the creditor will repossess the collateral, if you default on your loan.
If you don't make payments, the lender could repossess your collateral to make up for the lack of payment.
Secured loans, backed by an asset such as a house or piece of property, give the lender the ability to repossess collateral should the borrower default on their loan.
If the debtor violates the security agreement, the moneylender has the right to repossess the collateral.
If you fail to make your mortgage payment on time, a creditor may repossess the collateral you've put up for your debt (in this case, your home) in a foreclosure.