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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
Do commercial loan brokers in Virginia need to be licensed?
In the State of Virginia, you must obtain a license to be a commercial mortgage loan broker. There is an initial fee of $500 and the requirement for a Surety Bond. The Virginia Department of Business Assistance can give you further details and answer questions. Call them at 1-866-248-8814. By the way, if you are interested in being a mortgage banker (vs. broker) that means you actually fund a loan and then sell the loan into the secondary market to get your money back to lend again. Such a "lending" license in Virginia requires a minimum net worth of $200,000.
Are a mortgage and promissory note the same?
No. The term mortgage is many times used by consumers and others to refer to both a note and a mortgage but they are not the same. A note is a promise to pay. An 'I owe you' committing the borrower to pay the lenders and setting out the terms of the loan. A mortgage is one form of a security agreement. The document sets out the terms of the security provided by the borrower to the lender to protect the note. A person has to own the property before they can provide a security agreement that will create a lien or charge on the property. Technically that means a home buyer will need to go on title before the mortgage can be used to put a lien on the property. A little chicken and egg but generally handled through escrow by a lawyer, solicitor or escrow agent. Many times there will be one physical document that contains the note and the mortgage. In some US states a borrowers will sign a note and a trust agreement. Trust deed states is a term for them. Rather than use a mortgage that requires court action a trust agreement will allow a third party to sell off the asset, the house, without court action. Cheaper and faster so the lenders are more open to making the loan in the first place. Less risk to the lender, lower costs to the borrower. No, they are not the same, but they work together. A promissory note says, "I am borrowing $X from you and promise to pay you back $Y per month which includes interest of Z% per year. On DATE, the loan will mature and I will pay you the outstanding balance at that time." But that is just a promise. What does the lender do if the borrower doesn't perform according to the terms of the note? That's where the mortgage comes in. The mortgage document (or Deed of Trust in some states) pledges ownership in a property as collateral for the promissory note. It says, "Here is the legal description of a property I own. If I don't pay this note on time and in full amounts due at each time, then you can foreclose the note and accept this property as payment."
Can you get a personal and or home loan with a 567 credit score?
Yes, but at a very high interest rate.
Why cant I get an auto loan with my excellent credit?
It depends on many factors including income, length of job, time at residence, debt to income, and payment to income. Banks want to see stability as in your job and residence time. Also they want to see that you have the ability to pay. For example to make it easy.... you make $4000 a month but your credit report shows you have $2500/month in payments and you pay $500 for rent. Your debt to income is 75%. That means a bank sees you have 1000 dollars a month to play with. Not 4000. Banks don't like to go over 50. Also PTI payment to income. Banks like to stay under 18% usually. So take how much you make a month and times that by 18%,,,, that's how much of a payment they say you can afford. Theres much more but without seeing a credit report, I cant help. If anyone would like please email me plague@infoblvd.net. Experienced Finance Manager
You have to pay interest, cant borrow smaller amounts or cant borrow smaller amounts then what is stated, cant borrow for longer or less then a certain amount of time, again, will be stated.
Hope this helped!!
When you get a loan on a property you own, you pledge the property as collateral for the loan through a document called a mortgage (or Deed of Trust in some states). The mortgage gives the lender a "lien" on the property -- that is to say a "right" to sell the property in an attempt to recover the original loan amount.
For the lien to be enforceable, it has to be recorded in the county clerk's office. This establishes the official date and time the lien was established.
If you are the first lender to loan money against the property, you will have the lien of first priority (in terms of date and time) -- or, the first lien. If you are the second lender, the mortgage document which you receive from the borrower (pledging the property as collateral) is the second lien mortgage. This means you stand second in line behind the 1st lien mortgage holder in your claim to the asset.
Usually, the interest rate charged on a 2nd mortgage loan is higher than the first because of the added risk of standing second in line.
Why is that riskier? Here is an example:
Mr. Able owns a property free and clear (no debt) which is worth $100,000. He borrows $70,000 (signs a note) from Mr. Baker who charges him 5% interest. Mr. Able also signs a mortgage (as the Grantor) and thereby pledges his interest in the property as collateral for the loan. Mr. Baker has a first lien on the property.
Mr. Able needs more money and borrows $20,000 from Mr. Chance who charges him 10% interest and requires Able to sign a second mortgage. Mr. Chance has a 2nd lien and stands behind Mr. Baker in his claim against the asset.
Mr. Able becomes disabled and no longer pays on the loans. Mr. Baker, as the 1st lienholder, forecloses and takes possession of the property. He sells the property on the open market for $87,000 and spends $2,000 in legal fees to get this done.
The court sees to it that Baker gets his $70,000 back, plus the $2,000 in legal fees. How much money is left over? 87,000 - 70,000 - 2,000 = 15,000. Baker has been made whole... so Mr. Chance now gets his chance. He originally loaned 20,000 but only gets the remaining 15,000 -- so he has lost $5,000.
Which brings me to my final point regarding 2nd liens: did Chance get enough additional interest to adequately compensate him for the additional risk of standing second in line? If he had stood 1st, he would have been repaid in full (including legal costs). But by standing 2nd, he lost $5,000.
Chance received an additional 5% per year (his loan's 10% rate less Baker's 5%). That's an extra $1,000 per year (20,000 x .05). It would take 5 years for Chance's additional interest to recapture the principal loss of $5,000.
At this point, the two lender's experiences are financially the same. For 5 years, Baker collected 5% per year and then got all of his money back. Chance collected 5% per year for 5 years too. But then he lost $5,000 at the end of the loan period. Fortunately, his "additional" interest added up to $5,000 to make him whole.
Conclusion: In this case, with this expected loss rate, the 10% interest rate on the 2nd lien loan is an adequate "risk adjusted" return ONLY if the loan performs for 5 years before going into foreclosure. Any less time and Baker gets the better return. Any longer time frame and Chance comes out ahead (again, not taking compounding into account).
If you are considering making a 2nd lien loan to someone, you need to know (1) how much money is standing in line in front of you, (2) how long you think the loan will perform before it might go bad, and (3) if that happens, how much property value might be lost. Only then can you estimate an adequate, risk-adjusted rate of return to charge for making the loan.
If the second mortgage foreclose who pays the first loan?
If the second mortgagee forecloses and takes possession of the property it must pay the first mortgage or if they sell to a third party that party takes the property subject to the first mortgage.
I, personally, am exhausted of hearing the same conversations of how BROKE everyone is! I DO NOT have the "ear" to "hear" anymore whining about personal finances. For anyone experiencing financial burden, it may be in your best interest to read further. work at home employment that is LEGITIMATE and LEGAL. Paychecks are distributed weekly or bi-weekly, contingent one is articulate, maintain a quiet work environment, and able to abide by flexible hours. Also, one may begin a BRAND NEW CREDIT REPORT LEGALLY in this recession. If one wishes NOT to repair or renew credit, simply browse to the work from home job listings to apply immediately. Most vacancies are in search of immediate hires. Our lifestyles need to MODIFY We are to dependent on third parties for survival. Telecommuting will save money on gas, clothing, childcare, food, health care, insurance, utilities, and stress. I am tired of banks, retailers, landlords, oil companies, and manufacturers PREYING on Americans in this sad monetary time. Apply for the positions posted; ironically, all job openings are via corporations seeking virtual employees. There are no costs, scams, tricks, etc. All are encouraged to improve their credit situations; however, it is NOT mandatory should you wish to apply for open job positions. Simply, apply for job openings upon the "Meanwhile Work From Home" page upon the web site. Please note, the salaries WILL NOT supply the funds to purchase mansions, private jets, or exotic cruises; however, the paychecks will satisfy monthly bills! Additionally, contact me should you have further questions. WE NEED TO GROW UP and assist one another; otherwise, we will all TANK to the bottom of the sea!
Is john Walter loan investment a scam?
As I've read, it's one of hundreds scam loans
Here's the list of about 400 of them
http://www.data-wales.co.uk/ni_fake_loans.htm
If you don't have a job can you get a car loan?
If you can not prove to the loan officer that you have a stable source of income don't count on getting the loan.
The legal mortgage in land registry transfers the estate or interest in land or other property for securing the repayment of debt.Since the legal title can only be transferred once by the current owner(mortgagor) to a mortgagee,it follows that only the first mortgage can hold this distinct status.A legal mortgage is therefore a document in which the direct conveyance of title is involved subject to the repayment of a debt.
If you have one owner occupied mortgage are you entitled to have another mortgage?
You can have as many mortgages as the banks allow. However, you can only have one primary residence mortgage and one second home which usually needs to be a fair distance away from your primary home and usually located in a vacation type area otherwise it would be considered investment property which carrys a higher rate due to risk. You can obtain another primary residence after 1 year and keep you existing home as rental property. The problem is, is that you must prove to the bank that your new home will truly be your primary residence and you must either qualify for two homes by your income or your income plus a lease. Always state your intentions up front with your mortgage lender so that you can be placed into the correct loan in order to avoid serious problems down the road.
It is better to let a banking institution deal with this. This happened to my husband and his younger brother. The inheritance was held up because of Probate. Instead of loaning his brother the money out of his own pocket he and his younger brother went to the bank and produced the death certificate and a copy of the will to the bank and they loaned his brother the money (after he signed papers that what money they loaned him came out of the inheritance right off the top.) The bank compounds the interest rate. If you personally loan this family member the money then you may get stuck with paying it. Try doing the above and keep it between the family member and the bank. You need to establish 3 key points 1. The loan amount. 2. The interest rate. 3. The time agreed to repay you the loan. Let's say $100,000 at 5% and it must be paid back in 10 years. Without going into all the calculations (I'll post the link for you) The repayments would be $1060.67 per month for 10 years. http://www.anz.com/common/calculators/loanrepayment/exampleau.asp#profile
Where can you get an instant loan?
It's two weeks until payday, your credit cards are maxed out and then your car breaks down. You only need a few hundred dollars for the repair but you need it now. Many people in these situations have turned to "alternative" financial services providers such as pawnshops, car-title lenders (for a loan secured by the borrower's car) and payday lenders (for unsecured loans that borrowers promise to repay out of their next paycheck or regular income payment). But while many nonbank lenders advertise quick and easy cash, their services tend to come at a steep price. You cant, if you could, everyone would do it. A payday loan is the closest but a very unwise choice.
When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor
It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car
In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car
Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency
A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.
Is 640 a recommended credit score for auto financing?
640 is a decent score. The score needed to get most of the advertised specials by the various manufacturers is normally a minimum of 720-750 or higher. If you have never had a car loan before 640 is a great score to start out with.
There are other variables that go into consideration for a loan. Time of current residence time at current job. You have to realize that the bank will probably never meet you, either face to face or on the phone, all they have is paperwork. So obviously the less risk the better. A 640 score with a 1 yr job and a 1 yr residence is not necessarily going to get the same interest as an applicant with a 5 yr job and a 5 yr residence.
email me lisa_jensen23@yahoo.com
Can a borrower refinance a mortgage for a non-primary residence?
Yes you can refinance a non owner occupied property. The rates are higher than a primary home as the bank view it as more of a risk and there are separate guidelines for the bank. Best bet is to contact a representative to better assist you with a quote to confirm it would be a benefit.
Veronica Rodrigues
Voyage Home Loans
A recourse loan is a type of loan where the lender has the right to seek repayment from the borrower's other assets if they default on the loan. This means that if the collateral securing the loan (such as a home) does not cover the outstanding debt, the lender can pursue additional assets or income of the borrower to recover the remaining amount owed. This contrasts with non-recourse loans, where the lender's recovery is limited to the collateral itself. Recourse loans typically carry higher risk for borrowers but may offer lower interest rates as a result.
Can a person who is 18 years old get a car loan without a co-signer?
Legally, yes, as an 18-year-old is legally authorized to enter into a contract. Whether a lender will give you one based upon your credit history is a different matter.
depens on the state in Alabama yes they can at 18
What is a personal loan note rate?
The interest rate is variable from state to state, lending financial institution, and your credit score.
Refinance your mortgage if you owe back taxes?
Do you have a lien on your home? If a lien is placed on your home, you will not be able to refinance to pay back taxes.
What can the bank do if I can't pay my mortgage because of illness?
Banks don't take into account the reason for being behind on mortgage payments. They can foreclose, and re-possess your home. But it could benefit you considerably to contact your bank, and ask if they will work out a temporary payment plan for you. Since banks prefer to have the payments, instead of the property, they will sometimes be willing to let you pay the interest only. But they do put a time limit on how long they will allow you to do that. Furthermore, you will still have to pay the principal, which is usually tacked on at the end of the mortgage term. Another option may be to contact Consumer Credit Counseling, or a similar organization.
