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A whole lot of bad - the US' credit rating will drop dramatically, causing interest rates on the national debt to skyrocket. This will likely drop the US into a second recession, probably worse than the first; the national economy will almost assuredly hit the skids. The stock markets around the world will react badly, causing a massive loss in investment value as well as investor trust and confidence.
What else can I help you with?
How did mortgage defaults affect banks involved in mortgage lending and mortgage investing?
Non performing mortgage loans hurts a bank's profitability. This should cause a bank to be more prudent when making mortgage loans. In severe cases of defaults, a bank may decide to cease making such loans. To avoid more risk, the bank could find another bank to sell its mortgage portfolio to.
What is the difference between secured and non secured loans?
Secured loans are backed by an asset, to be collateral in case the borrower defaults on the loan. An unsecured loan does not have this and usually costs more and has a higher risk to the bank.
What are some of the services that commercial mortgages provide?
Commercial mortgages provide loans for business properties. Many provide nonrecourse loans which means if a loan defaults, the property can be seized but the defaulter can not be held liable for additional money like a home loan can.
What are the risks associated with high yield loans?
High yield loans, also known as junk bonds, carry a higher risk of default compared to investment-grade bonds. This is because the companies issuing these loans are often less financially stable and have a higher chance of not being able to repay the loan. Investors in high yield loans face the risk of losing their investment if the borrower defaults.
Why are student loans considered in secured?
Student loans are considered unsecured because they are not backed by collateral, such as property or assets, which lenders can seize if the borrower defaults. Instead, these loans are based on the borrower's creditworthiness and promise to repay. This lack of security means that lenders face a higher risk, which can result in higher interest rates compared to secured loans. Additionally, in the case of bankruptcy, student loans are often difficult to discharge, further complicating the borrower's financial situation.
What is the importance of the unemployment rate in Illinois and the US?
High unemployment generally leads to higher crime and more defaults on home loans.
What happens to your cosigner if the borrower defaults on private loans?
The creditor wil try to get the debt from the cosigner as well.
What are the pros and cons of collateral loans?
Collateral loans are secured loans. They depend on the ownership of a house or vehicle. Collateral loans can be very quick to obtain. If a borrower defaults on a collateral loan, the lender can take the property or vehicle that had been borrowed against.
If your cosigner defaults on other loans but you are making your payments can they repossess your vehicle?
No. You are the primary borrower and are honoring your financial obligation.
How did mortgage defaults affect banks involved in mortgage lending and mortgage investing?
Non performing mortgage loans hurts a bank's profitability. This should cause a bank to be more prudent when making mortgage loans. In severe cases of defaults, a bank may decide to cease making such loans. To avoid more risk, the bank could find another bank to sell its mortgage portfolio to.
What is the difference between secured and non secured loans?
Secured loans are backed by an asset, to be collateral in case the borrower defaults on the loan. An unsecured loan does not have this and usually costs more and has a higher risk to the bank.
Can you write up a deed of trust pursuant to an owner's partial interest in a property if there are no other loans on the property?
Yes, but if the mortgagor defaults on the mortgage you can only acquire their partial interest by foreclosing on the mortgage.Yes, but if the mortgagor defaults on the mortgage you can only acquire their partial interest by foreclosing on the mortgage.Yes, but if the mortgagor defaults on the mortgage you can only acquire their partial interest by foreclosing on the mortgage.Yes, but if the mortgagor defaults on the mortgage you can only acquire their partial interest by foreclosing on the mortgage.
What are some of the services that commercial mortgages provide?
Commercial mortgages provide loans for business properties. Many provide nonrecourse loans which means if a loan defaults, the property can be seized but the defaulter can not be held liable for additional money like a home loan can.
What are the types of collateral that can be used for loans?
Common types of collateral that can be used for loans include real estate, vehicles, investments, and valuable personal assets like jewelry or art. These assets serve as security for the lender in case the borrower defaults on the loan.
What are the risks associated with high yield loans?
High yield loans, also known as junk bonds, carry a higher risk of default compared to investment-grade bonds. This is because the companies issuing these loans are often less financially stable and have a higher chance of not being able to repay the loan. Investors in high yield loans face the risk of losing their investment if the borrower defaults.
I cosigned student loans for my daughter she is unable to pay. Can a lien be placed on my home?
Yes. As the co-signer you guaranteed the loans would be paid. You are responsible for paying the loans if the primary borrower defaults. The lender can sue you and if successful it can request a judgment lien that can be recorded in the land records. You cannot sell or refinance your home until the lien is paid.
Are loans taken out on timeshares in the Bahamas reported on US credit reports?
Yes, if the loans are through a US lending institution.
