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Loans
Money lent to individuals or businesses in return for interest in addition to repayment of principal. Common types of loans include commercial loans, interbank loans, mortgage loans, and consumer loans.
13,117 Questions
Lender is supposed to provide confirmation that they received QWR within 20 days, as required under 12 U.S.C. §2605(e). Thereafter, they have 60 days of their receipt of QWR to respond to you, also as required under 12 U.S.C. §2605(e)
Can a payday loan company garnish wages in Virginia?
If the creditor sues the debtor in civil court and is awarded a judgment the judgment can be executed as a wage garnishment.
Do you still have to pay on a loan after your car is repossessed?
Yes, provided there is still an outstanding balance after the repossession and resale are completed. This is the case in most situations, due to the added cost of repossession, storage, and transport of the vehicle that will be assessed to you. If it remains unpaid, the lender may (likely will) file legal actions against you to recover the balance.
What recourse does car dealer have if customer defaults on loan?
The car dealer may sit in front of his show room and drink tea while he is watching the world go by. He may try a new marketing ploy to bring in new customers. He may take out huge loans to pay for new television and radio ads.
The dealership, unless it is a buy here pay here establishment, has no involvement in the car--aside from warranty work--or the loan once the vehicle leaves the lot.
The lender on the other hand can and often will (successfully) repossess the vehicle.
Legally can you get in trouble for putting a car loan and title in your name for someone else?
In essense what you are describing is loaning a car to another person for an indefinate period of time. If the arrangement is that the other person is to make the payments, it is a foolish thing for you to do, dangerous to you financially. But, no, you cannot get into criminal trouble, only trouble of a financial nature.
Can purchaser cancel auto financing?
The only time the purchaser can cancel auto financing is in the begining of the loan during the "interview" with the finance company. That is one of the reasons the dealership will not tell you who the finance company is before they get "funded" by the bank. If you knew who the finance company was before the dealership gets funded then you can cancel the financing. The other issue you have is the contract signed with the dealership. They can still say they will be the bank and stick you with the car and the financing.
If the car is reposessed do you have to pay off the balance of the loan or the late payments?
Yes, you contracted to borrow money. That money was loaned to you, it is gone. Now you have the principle and the interest. The vehicle that was repossessed only secured the loan. The lender did not want your car, but your failure to pay as promised left them no choice but to secure some sort of payment. Now you have what remains, plus costs and continuing interest. If you fail to pay now, you may have no choice in how the lender collects the full amount.
How long do unpaid car loan stay on your credit report?
Any unpaid loan will remain on your credit record for seven years from the last date of payment. In the event the lender obtained a judgment against the debtor, it will remain on the record for ten years past the date the judgment was issued. In some cases, if the lender obtains a judgment, the account is not paid, and the lender obtains an extension, the record will remain for an additional ten years past the first ten.
What banks in Florida have wage garnished for auto loans?
All banks in Florida, Georgia, the Carolinas, Virginia--wait!--All banks in every state will garnish your wages for unpaid balances for which they have a judgment. This is a common practice in the collection industry. And, if they can locate it, they will garnish your bank accounts and other assets as well.
How much will the bank need to charge on its loan to make a profit?
The breakeven amount for a particular loan varies from bank-to-bank and customer-to-customer. To give an example, we will use a basic installment loan that is taken from an average consumer.
Say an existing customer takes a personal loan for $3,000 and the loan will last for twelve (12) months. The company has to account for the following MARGINAL elements in order to make a profit:
* Acquisition costs (how much did it cost to acquire the customer)
* Cost of funds (how much do they pay to borrow money that they will loan)
* Charge-off Rate (what is the rate of default for a similar average customer)
* Underwriting costs (how much does it cost to underwrite the loan)
* Onboarding costs (how much does it cost to setup the account)
* Servicing costs (how much does it cost to send statements, take payments, report to the credit bureau, etc.)
* Payoff costs (how much does it cost to close the loan)
Making assumptions for each of the items on a marginal basis:
* Acquisition costs are $0 (we stated that the borrower was already a customer)
* Cost of funds is 2%, or $60
* Charge-off rate is 5% (or $150)
* Underwriting costs are $40
* Onboarding costs are $30
* Servicing costs for 12 months at $2/month is $24
* Payoff costs are $10
So, the basic marginal expense is $164 if we ignore chargeoffs. We will assume that the client does not chargeoff, so the rate needed to break even is:
$164 / $3000 = 5.47%
However, on average, 5% of customers DO chargeoff, so to account for that we might add $150 to the costs as follows:
$314 / $3000 = 10.47%
Most banks want to earn 1% on the asset side and 1% on the liability side, so the bank would likely price the loan at 11.49% or 11.99% for a "good risk" customer.
How does a fixed rate mortgage differ from an adjustable rate mortgage?
The interest rate on a fixed rate mortgage does not change over the life of the loan. An adjustable rate mortgage interest rate may change up or down depending on what the interest rates are, at the contracted time the loan is reviewed.
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Advantages and Disadvantages of Personal Loans?
When choosing a personal loan it is important to note that often small but significant differences exist between the loans on offer, and as a result some types will be more suited to your individual circumstances than others. These differences may include flexibility, repayment terms, insurances offered and how established the lender is.
It can be difficult to remain objective when you are in need of money, but if you fail to consider the risks associated with borrowing you may end up regretting a commitment to a high interest rate or demanding repayment schedule. When you have a clear idea of the advantages and disadvantages of loans in general, comparing the loans on offer will prove easier. Consider the disadvantages you are prepared to accept, such as higher interest over a shorter repayment period, if you are keen to pay the loan off quickly.
Advantages of a Loan
Loans are a relatively fast way to obtain funds for a special purchase or project, and even large amounts can be borrowed for almost any purpose. They are suitable for expensive purchases that require immediate payment, allowing you to spread the cost of the purchase and manage your short term finances more easily, especially if your loan has a fixed interest rate (see Interest Rates).
There is a high level of competition amongst lenders, which usually makes it possible for you to negotiate a cheaper interest rate than the one which you are initially quoted. It may also be worth investigating whether there is a specialist lender who can provide loans tailored to your specific purpose, for example buying a car, since they may offer you a cheaper or more suitable loan. Personal loans are often more popular than other sources of finance such as credit cards and overdrafts, because the amount you can borrow is typically greater.
Disadvantages of a Loan
Loans constitute a long-term financial agreement and used in the right way can be a useful financial tool. However, anyone considering applying for a loan should analyse their personal finances carefully, and calculate exactly how much they can afford to borrow based on how much money they can spend on repayments each month, once their other financial committments have been honoured.
If you cannot afford to make repayments when they are due, you may face a penalty. If you have chosen to take out a secured loan, you may even lose your home. For this reason it is important to read all the 'small print' of any loan contract to see what penalties could be levied, and consider whether or not you should be applying for a loan at all. Furthermore, if you default on the loan, your credit rating and ability to access credit in the future will be detrimentally affected, see Credit Scoring.
On the other hand, you could also be penalised for making a large lump sum repayment to pay off your loan sooner than agreed. Although most loan companies will allow you to do this, they may charge you an early repayment fee.
For anyone wishing to borrow only a small amount that they aim to pay back within a short period of time, acredit card may be a more suitable solution because the balance can usually be paid off in full at any time without incurring early repayment fees. Similarly, an overdraft may be a more effective option for those who require a relatively small amount of credit in an emergency. However, interest charges for overdrafts and credit cards are usually much higher than for personal loans, so it is inadvisable to use them for long-term borrowing.
Why is it easier to get a secured loan?
A secured loan is one in which the debtor pledges some tangible item of value, such as a motor vehicle or real estate, as "security" for the loan - i.e., the creditor may take possession of that item if the debtor defaults on the payments. This makes the loan safer for the creditor and, therefore, easier to get.
Is paying mortgage off a bad idea?
Paying off your mortgages can negatively impact you at tax time. Some CPA's suggest their clients maintain a minimum balance on their mortgage in order to maintain their tax "write-offs".
This downside may not outweight the benefits of having no mortgage payment.
Do you have to pay back a car loan on a surrender?
The simple answer is, yes!
Let's go from the standard cause and effects. At the day you purchase your car, you sign a contract agreeing to pay a certain amount of money monthly of a period of time. If during that time frame of that contract you either voluntarily surrender the car or it is repossessed for non payment, the standard contract agreement states that even if the car is surrendered or repossessed, you must pay the remaining amount of the contract.
Each style of contract is a little different. If you are in a lease contract for an example of 36 months, and must pay $1000.00 a month. The total amount paid over the length of the contract is $36,000.00 if it is completed. But let's say you turn the car in after the 26th payment. That would leave $10,000.00 remaining owed. The finance company can pursue you for that amount, as well, any additional fee's IE: Lawyer fees, court fees, collection fees, etc, etc.
Now if you were going to purchase the car and had a 72 month contract. The final price of the car once you signed the final paper work on the agreed price was $30,000.00. After making 50 payments and paid $22,000.00 so far. You surrendered the car; the finance company will auction the car at the standard Automobile Wholesale Value. You owe the finance company $8,000.00 still. But the car only sales for $6,000.00 in auction, you will still have to pay the $2,000.00, as well any additional fees. Now let's say the car sales for $8,500.00. The finance company must return to you any overage amount it receives. Keep in mind they still will take out the fee's there.
What would be the monthly payment on 90000 mortgage at raate of 75 percent interest for 30 years?
At 75% interest and no other variables, the payment would be $5,625.00 per month.
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However, if you meant 7.5% (a more realistic interest rate) principal and interest would amount to 629.29 oer month. Add to that taxes and insurance.
Can a home loan be included in chapter 7?
Yes you can. After being discharge the lender will continue any process they were into. By filing BK you are only buying more time in the house. In CA it's about 3 monthd or more depending on your lender.
Can a remainderman get a mortgage on a property with a life estate?
It is possible. It is not likely to be very favorable terms, but if the bank is willing to do it, they certainly can. Consult with a bank in the area that knows what the rules are for where you live.
Can you get a mortgage with 600 credit score?
Yes you can find lenders that will do this, but they will go through FHA and since FHA is now credit driven, you will get hit with a rate bump, which means you will be paying alot higher rate than the national average.
What are the advantages and disadvantages of reverse mortgage?
Advantages:
- Tax free money.
- No mortgage payment.
- Non-recourse mortgage- they cannot pursue you personally for any shortage on the payoff.
- Multiple options for receiving the money.
- No credit or income requirements.
- Medicare and Social Security unaffected.
Drawbacks:
- Medicaid can be affected.
- Reduced equity in the home.
- Closing costs are often higher than forward mortgages.
- Interest accrues resulting in increasing payoff balance on the mortgage.
Why do you need a mortgage broker?
It is simple but it is also depends what kind of answer you are looking for.
If it is for your own benefits, then Mortgage Brokers would save you allot of time. They are able to find the right product for you so you don't have to shop around for weeks or may be months from bank to bank.
It is also important to understand, that by using financial services your providing jobs, which means supporting economy of your own country.
If you are from Australia, then try this website - http://www.aussiebestloans.com.au/
They working with "TOP 100" Brokers in Australia
Good Luck
Nick
