Loan Consolidation

Loan consolidation is an approach that lets borrowers take out a new loan with a low rate of interest to payoff high interest loans. Tightened lending criterion has made it difficult for many people to qualify for loans, so the first thing borrowers need to do is check their credit rating. Although loan consolidation can seem like a good idea, it is necessary to figure out the real costs involved with taking out a new financial loan. This is exceptionally crucial when attaining a home equity loan that requires putting real estate up as collateral. Any time real estate is used to secure bank financing it is put at risk for foreclosure. It can be extremely risky to use a house and take out a loan to pay off unsecured debts. If homeowners
Lenders offer loan deferment on nearly every type of loan including secured and unsecured loans, as well as student loans. Borrowers must obtain approval from their lender and abide by deferment procedures. The loan deferment process requires borrowers to contact their lender, submit a deferment application, and undergo the approval process. Much depends on lender policies, borrowers' credit history, type of loan, and how many payments the borrower wants to defer. Approval may occur instantly or take several weeks. When applying for loan deferment it is important to retain a copy of loan documents and keep a record of phone or email correspondence. When tracking phone conversations, write down the date and time of the call, name of the person you spoke with, and a summary of the conversation. When documents are sent via mail or delivery courier spend the extra money to obtain tracking records in case you need to verify the documents were received by the lender. Typically, deferred loan payments are placed at the end of the loan; extending payment terms. Depending on the circumstances and type of loan, lenders might defer three or more payments. When borrowers face temporary financial setbacks which require two or more months of deferred payments, lenders often request a letter of financial hardship. Hardship letters are usually required with real
What if I said that a business owner could borrow money for his business without giving his personal guarantee or a pledge of his or family assets? What if I said that he could borrow these funds at a low fixed rate of interest? I would expect you to say that I must be crazy or certainly living in a dream world: well,perhaps, but I don't think that either is quite the case. A typical scenario, particularly in today's economic climate, is that the business owner approaches his bank for an expansion loan. The banker asks for the appropriate amount of acceptable collateral, personal guarantees, past three years financial statements, both business & personal, along with, perhaps, a business plan and cash flow projections for the proposed life of the loan. The probability of having the loan granted is next to zero. No one is lending today for a plethora of economic reasons. Being persistent and actually applying for a loan, and missing any of these aforementioned components, assures that the banker is off the hook and can readily say no. Furthermore, should reliance of repayment be based upon the projections and the success of the new expanded entity, makes the chance of the loan being booked even less likely. Bankers in the past were conservative, risk averse, protecting their shareholders interests and their own careers, that is of course prior to the sub prime market bust. Going the next