Loans

Let us take into consideration the following entities that would be used during the explanation.

Bank 'B' - The Bank that is issuing mortgage loans

Customer 'C' - The person who has taken the mortgage loan from the bank

Agency 'A' - The Agency that is going to create the MBS

Investor 'I' - The person who is going to purchase the MBS

Customer 'C' approaches Bank 'B' with the request to issue a mortgage loan of Rs. 1,00,000/-. After all the scrutinizing process 'B' decides to grant a loan of Rs. 1,00,000/- to 'C'.

Agency 'A' buys the mortgage loan that was granted to 'C' at the rate of say Rs. 90,000/- and then packages it into a bunch of securities each with a face value of say Rs. 100/- each. Which means 'A' would be creating 1000 units of the MBS. These MBS units would be available for sale in the open securities market for investors to buy. Our Investor 'I' decides to buy these MBS units. He makes a payment of Rs. 1,00,000/- to 'A' and purchases the units. In many cases 'A' may opt to retain a portion of these units based on the loan mixture to generate revenue for itself.

'B' can now use this Rs. 90,000/- for granting fresh loans to other customers.

This is how a typical MBS gets created and sold in the open market.

The only way one with bad credit get a loan from a bank is to use a co-signer who has a stronger credit profile.

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While financial organizations use different (usually proprietary) criteria to underwrite loans, in general, financial institutions are looking for the following five Cs when advancing a loan to someone:

* CAPACITY (how will the loan get repaid; what is one's capacity to repay the loan)

* CAPITAL (how much are you personally invested already to warrant a loan; for consumers, capital is equivalent to a down-payment)

* COLLATERAL (what guarantees are in place to protect the bank from your non-payment; a house is the collateral for a mortgage)

* CONDITIONS (where are you at when you ask for the loan and where is the general economy at when you request a loan)

* CHARACTER (subjective decision as to whether you will pay back a loan, sometimes based on references, sometimes based on a conversation)

The US Department of Education's National Student Loan Data System (NSLDS) can help current and ex-students find out (1) if they have a student loan and (2) what the terms of the loan are. The system may be accessed at:

www.nslds.ed.gov

For private loans, check your credit report.

No you must transfer the title to your name. Contact your local DMV for more info.

The amount of times you apply doesn't mean anything to the underwriter of the modification. He/She is looking for three things:

1) That you cannot pay your mortgage at the current rate according to your financial review

2) That you WOULD BE ABLE to pay ALL expenses if your mortgage payment was modified.

3) The reason you can no longer afford the house is due to an economic hardship (you've had a cut in pay, unemployed, etc)

If the lender agrees, of course you can remodify, but you cannot force the lender to modify the terms.

Yes. You are relinquishing any "right" you may have to that particular property.

You can, if the town home is in an approved FHA complex it makes it much easier. If it is not then you have to apply for a spot approval which is asking for an exception to the requirement that the HOA or complex be FHA approved based on the merits of your particular property.

Bac Home Loans Servicing Lp, Isaoa Atima, PO Box 961206, Fort Worth, TX 76161-0206

To conduct a short-sale transaction, the bank(s) holding the mortgage(s) have to agree to a short-sale. If your name is not on the Mortgage, technically you don't have a right to conduct a short sale.

Even if you "own" the house (which will be in question during the entire process), the holders of the Mortgage note(s), typically banks or finance companies, actually have primary ownership of the asset (the house).

If you are able to complete a short-sale, even though you are not on the mortgage note, as an owner the bank holding the note may ask you to take partial responsibility for the difference between sale price and mortgage value, or even to put in equity immediately to avoid a short sale situation. If this occurs, and you cannot pay, you will end up with a debt and a schedule to pay that debt. Adding any debt will negatively affect your credit score.

Yes, however, the company is not likely to do so.

Payday loans are generally less than $2,000 so most payday lenders will not go to the trouble to sue someone.

However, what they may do is sell the bad debt to a collector and that collector may be willing to come after the debtor as collectors are set up for recovery via the legal system.

Yes, depending on the state in which the vehicle is domiciled and the loan is originated.

In general, if after thirty (30) days a payment is not made on a vehicle then a finance company may notify the borrower that they are going to reposess the car.

For customers with good credit, the threats do not come until after sixty (60) or ninety (90) days. For customers with historically poor credit, the threats will come as soon as possible (30 days).

This likely refers to the process to ensure that a property is clean of other encumbrances and debts before a new mortgage is given. Some examples if these might be past due HOA fees.

No.

Any home equity line uses the underlying property as collateral. A home equity line will only be extended if the following are all true:

* The valuation of the home suggests that there is equity left over after meeting the obligations of the primary/first mortgage

* There is not already a second mortgage outstanding

* The credit worthiness of the borrower is good (score of 720+)

Instant equity is usually only generated through the refinance of a house (revaluing the home upwards from where the valuation was when obtaining the first mortgage). At that time, one may cash out part of that equity increase and apply the amount cashed out to the new loan.

The popping of the housing bubble has greatly reduced the number of refinances that provide for cash out.

A joint account is just another bank account which can be used for any purpose. Yes, you can use it to take a personal loan or pay for one. There are no restrictions reg. joint accounts not be linked with personal loans.

They will take whatever you put down as collateral.

For God sake, don't put your legs down as collateral. It may seem like a good idea at the time, but they are much more expensive than whatever you got from the loan shark.

I mean £1,200 for a pair of legs at Argos. Geez!

Not likely. If you cosign then you are saying "I trust my credit in this person's hands." If the signer does not pay then it is the responsibility of the cosigner to take care of the payments.

This is a very open ended question, it depends on how much you are applying for, what dealership you go through and how willing they are to work with you, your previous auto finance history will play a part, as well as your credit. all in all, i dont see it as a "no"

You will get the terrible rate of 4000%. Sorry

Yes, if one got the loan after foreclosure proceedings began.

When banks make credit decisions, they want to consider as much up-to-date information as possible. If a foreclosure is coming up but is not on the credit report, the bank may grant the loan. Once the foreclosure shows up on the report, the bank will conduct due diligence and see if they would have granted the loan knowing about the foreclosure. Most banks would not and will call the loan, making you responsible for paying immediately.