All About Secured Loans(all about loan)

all about loan

With many personal loans, the only security required for the loan is your signature as a representation of your willingness to repay. However, in some circumstances lenders may require that security take the form of real estate, or investments such as stocks and bonds. When these types of assets are offered as security, they are referred to as collateral.

By offering collateral, you may be able to borrow more than you could simply on your signature. As well, it is also very likely that you will be able to borrow at a lower interest rate. The reason for this is that if you default, the lender can take possession of the collateral as payment toward the balance of the loan.

In order to benefit from the secured rate, loans must often be 100 percent secured. Real estate equity and investments such as Savings Bonds, GICs or debentures, and mutual funds are often used as collateral. For collateral other than real estate, often referred to as "paper securities," only a percentage of the asset's value may be accepted as security. This is referred to as the "margin requirement." The amount you qualify to borrow will be based on the fair market value of the security -- what it's worth when you're using it as collateral, not what you paid for it.

Margin requirements vary with the type of security being pledged and from one financial institution to another. For example, typically only 50 percent of the market value of stock is accepted as security for a loan. The reason is that the price of stocks can be volatile, increasing or decreasing very quickly. Since, typically, only 50 percent of their market value will be accepted as collateral, even significant decreases in value will not result in insufficient collateral to cover the loan.

Assets pledged as collateral are reviewed periodically, and if the value of the assets has decreased and there is not enough collateral to cover the loan, you will be asked to pledge additional assets to secure the loan.

In legal terms, most movable property such as cars, boats and trailers are referred to as chattels. When you use this type of property to secure a loan, you are often required to sign a promissory note and a chattel mortgage giving the lender the right to take possession of the property if you default on the loan. Most car loans are actually chattel mortgages with the car being used as security for the loan.

A chattel mortgage contains a number of conditions that you must meet. For example, you cannot use the same property as security for any other loan or PLC, the property cannot be sold without the permission of the lender, nor can the property be removed from the jurisdiction outlined by the lender.

all about loan

Important Things to Know About Loan Modifications(all about loan)

all about loan

There has been a lot of news lately about loan modifications. And, guess what? As usual, the sharks come out to see who they can bite. So, you need to be aware of some things if you want a loan modification so that you don't get screwed. First and foremost, legally, it takes a real estate license to negotiate loans, so ALL of these companies that are coming out of the woodwork offering to help modify loans? Well, there are MANY companies/individuals operating these businesses illegally. I will say that some of them really do want to help people, and may even have good intentions, but regardless of good or bad intentions, technically some are running illegally. A lot of people stating that they help with loan modifications do not have a real estate license.

Another KEY point is that it is ILLEGAL to charge ANY upfront fees to help with a loan modification. Even if they say they just charge for paperwork and charge $5, that is ILLEGAL! So, basically, the 2 real key points just right off the top is that someone needs a real estate license to help with a loan modification and can not charge even one penny in upfront fees. Disclaimer: As far as I know, this goes for EVERYONE, except for possibly some attorneys may be exempt. If there are ANY exceptions to this rule, go ahead and email me the law from a legal source that supports the activity is legit and I will update my blog. Otherwise, don't bother emailing me without supported legal documentation to argue this point.

So, I have heard it all. I heard that one person charges one month's worth of mortgage payment which goes to an escrow account. If the homeowner gets the modification, the one month mortgage payment is her fee. If she doesn't, she supposedly reimburses the client the whole amount. I have heard stories of clients being charged up to $6000 in upfront fees for the modification. Logically, if someone has $6000, then they should PAY THEIR MORTGAGE! I have heard of $92 upfront fees, a percentage of the mortgage payment upfront, etc, etc. If the person is legit, they can help you with a loan modification and if the modification is successful, then charge a fee at the end, but no UPFRONT fees are legal.

The bottom line is that really, it is fairly simple. You just call your lender, ask the customer service person for the loan modification department. They will either send you a form to fill out or tell you how to get it online. You fill it out, write a hardship letter, maybe need to send in some information like bank statements, pay stubs, tax returns, and then you wait for an answer. It is pretty simple.

The people that want you to pay them make it sound like it is impossible to do it with out their help, but it really isn't that hard. Yes, it is sometimes frustrating to be on hold or be switched to different departments when the customer service person sends you to phone forwarding hell, but really, it is not worth a full mortgage payment or anything near it to do it yourself.

Obviously, if you are struggling with your mortgage and making ends meet, is it really logical to spend $1000 or more for help with doing something you could do yourself? And, truly, if you know anyone in the business of selling real estate, I am sure they would be more than happy to help you with any questions. I surely am more than happy to let people know what to expect and what to ask for and such. And, I have a real estate license and give the advice for FREE!

The moral of the story is if you are struggling to make your mortgage, don't pay even more money hiring someone that may very well be illegally operating a business when you can just make a simple call and spend maybe an hour or so gathering some information. The people that do the as a job make it sound like there is tons of paperwork and they package it the way the lender likes to see it.

Well, newsflash, for example, Washington Mutual sends out a one page form to fill out, asks you to write a hardship letter, give your current bank statement, 2 current pay stubs, and if you are self-employed then tax returns. Once you get the form in the mail, you can call customer care, give the person the info verbally, she plugs in your numbers, tells if you if prequalify for a loan modification. If you do, you fax in your documentation and wait anywhere from 30-90 days for an answer and it is a good idea to maybe check up on it every week or so.

If you truly have a hardship and late on your payments and such, sometimes that is an advantage in getting a loan modification. So, if you are late and struggling, don't feel like there is no hope in getting one. Although, I am not advising you to stop making your payments so that you can get a loan modification. I have also heard people not getting a loan modification because they were late on their payments, so it's case by case, there are no real general rules and regs. Also, if a lender does agree to a loan modification, there should be no consequences to your credit. A loan modification is like a refinance in a sense. However, if you are 30 or more days late, of course, that will go on your credit.

Just as a couple of examples of success stories. I heard of one guy upside down on his home. He owes $604,000 in loans and his home is worth in the $400,000's. He had a 6% interest rate with GMAC. His rate went down to 1%, they amortized the loan over 40 years, rather than 30 years, and now his payment on $604,000 is around $1500 per month. And, I heard of someone going from 7.5% to 2.5% rate. And, a few other stories. So, it can be a major change!

all about loan

3 Things About Loans(all about loan)

all about loan

Taking out a loan is a common thing to do in the world we live in. Our society today has a hunger and a thirst for the best things in life. We take out a loan is seems for many purposes, buying a car, home improvements, consolidation, holidays and a lot more besides.

There are a very small section of people that would never take out a loan or a credit card but this number is very small. Loans in the world we live in today have many purposes and can allow us to get the things we want in life today and the majority of people have had the experience of taking out a loan for many different reasons and over differing lengths of time.

The traditional source of loans used to be via your own bank, or with collectors who came to your door like the provident. The world of finance has changed massively in the last 5 years and loans have also gone through a transition period with the internet making access to lenders and getting a loan easier and faster for everyone

The services that online companies offer in the world of loans, is very different from just going to the high street and trawling from bank to bank or popping into a building society to wait in a queue .With the internet you can view all the major loan providers and some whose name you may not know but may recognize the loan companies jingle or television advert. But with a few clicks of your mouse the world of finance and loans is literally at your fingertips.

With the internet the time taken to find the loans that will suit your need fully is much quicker. You can view each loans supplier's rates, terms and products very quickly and quite easily. After all these company want to lend money and arrange loans with as many people as possible that fit their criteria, so they make the experience as simple and easy as possible so you get to find the loan you require in a shorter time. The application to the lender for your loan is also quick and easy and a more pleasant experience also evaluation by the lender can take a few minutes or at the maximum a few hours.

With the online services and loan suppliers available to you on the internet, you can process your loan enquiry from the comfort of your home or office.

So what else is there to know about loans, well they are really quite simple to understand as there are only two real types of loans secured or unsecured. With a secured loan you have to provide the lender with security, this is normally in the form of your home, and the lender takes a second charge on the property behind your mortgage lender. With an unsecured loan you do not have to offer the lender any security for your loan. Both types of loans have advantages and disadvantages and also unique features that can be made to fit your specific needs. So the basics are secured or unsecured loans.

But loans are also known globally by different names personal loans, motorcycle loans, car loans, caravan loans, home improvement loans, business loans, and holiday loans and that just a few. But they will all either be a secured or unsecured loan so if you require a loan or loans the internet could be your route to find the finance you require today and all at the click of your mouse.

All lenders have specific criteria and terms applicable to the loan your require but the finance and loan you require could be yours today.

all about loan

Types of Loans(all about loan)

all about loan

There's always something that we just have to buy---whether it's the latest gadget, a dream house, or designer clothes---but all too often, we don't have the money for it. In turn, they rely on loans, and live from paycheck to paycheck. But having too many monetary obligations can weaken a person's finances, and leave them with nothing saved up for the future. In some cases, families are left with no other choice than to file for bankruptcy, and be forced out of their homes.

But don't find fault with the loans, but in the people who borrow the money. In fact, getting a loan can build up your credit profile, as long as you are faithful in paying for them. But some people take on loans and get into debt without really understanding all about loans. That is an important part of shrewd money management. The current global financial crisis is forcing many to take stock and begin to make smart decisions when it comes to their money.

Here's the scoop on loans. Basically, loans are amounts of money that you borrow from a lender, which can be partially paid over a set period of time with the inclusion of interest. The interest is paid in addition to the monthly payment, which in turn is a portion of the entire loan amount. Secured loans require collateral, which is a piece of the borrower's property that he will hand off to the loaner if he cannot pay off his loan; or unsecured, where no collateral or tangible asset is pledged. For unsecured loans, the rate of interest is often higher because there is no collateral involved.

Many need to learn more about a particular kind of loan known as bad credit loans. People with excellent credit histories have a record of paying on time and satisfying their debt obligations, while those with bad credit histories have a marked tendency towards delayed payments and defaulted loans. Bad credit loans were created for this type of borrower.

Bad credit loans are offered by many banks, but often at a more exorbitant rate of interest than regular loans. This is because the lender is taking a huge chance by offering a loan to someone with a bad credit score. and A bad credit loan can help you pay for any outstanding bills or clear your other debts, leaving you with only one relatively smaller payment to make monthly. Read everything on the loan agreement forms and ask for clarification on certain points that you don't understand before signing the document.

all about loan