A secured loan is a loan whose repayment is secured by some liquid assests. It allows you to borrow money on more favorable terms and in a larger amount. Jewels or real estate owned by the borrower are most often used as collateral. An encumbrance is imposed on this property – until the debt is repaid, the borrower will not be able to sell, donate or pledge it again. If for some reason the debt is not repaid on time, the lender will have the right to withdraw the collateral. The process of issuing a title loan includes the execution of a pledge agreement in addition to the loan agreement. Typically, the loan amount is based on the assessed value of the proposed collateral. At the same time, high requirements are not imposed on the borrower, since the funds issued to him are secured by property.
Title loans include loans under the following security:
- jewels;
- non-moveable properties: appartments, houses;
- fur coats;
- etc.
4 reasons to choose a title loan secured by jewelry in Wisconsin
- Expert review. The staff of certified expert gemologists and customer-oriented company policy guarantee professional and objective expertise.
- Free consultation. The specialists of our referral service are always ready to advise you on any issues: the market value of the property, valuation methods, tariff scale, insurance terms and legal aspects of the title loan in WI.
- Flexible terms of cooperation. Companies offer various options for solving your financial issue: collateral, purchase, commission sale.
- Fast and simple registration. Your credit history is not important to lending companies. The collateral is your property. You will receive the title loan to your bank account on the day you apply. It will take a maximum of 30 minutes to assess the jewelry, calculate the loan amount and make a deal.
Title loans secured by real estate
A title loan is a loan secured by real estate. It is pledged by the lending company until the loan is paid in full. An individual is called a borrower, a bank is a lender, and real estate is a collateral.
After applying for a title loan, a person continues to use real estate: he can live there, register relatives in the apartment, and, with the consent of the bank, rent out the living space. But without the lender permission, it cannot be sold, donated, as well as other transactions. This is possible only after the client repays the loan and the bank removes the collateral.
What title to accept to issue a loan?
Each bank has its own terms. For example, in SIAB Bank you can apply for a security loan secured by an apartment or townhouse, which has the status of “apartment” with land.
Requirements for the pledged object:
- no emergency state;
- physical wear and tear not more than 70% at the time of assessment;
- lack of wooden floors (mixed floors are allowed);
- the material of the walls should not be made of wood (timber);
- the object should not be registered for overhaul;
- number of layers not less than three floors (except for townhouses);
- the object should not be on the list for renovation.
The title loan will not be issued against the security of an object that is still under construction. Also, they will not give on the security of an apartment or a townhouse, where a minor has a share and this is his only home.
Benefits of a title loan secured by real estate
Consider the positive aspects of this type of lending:
- A loan secured by real estate allows you to get much more money than standard programs. The more your apartment is worth, the more money you get. The amount is affected by the average market value of the collateral and the client’s solvency.
- With the right choice of a lender, you will not have to overpay. The interest rate is usually quite low in such cases. Therefore, if you have an expensive apartment, then you can get a very large amount of money at a very insignificant rate.
- You can extend the maturity of your debt.
- There is a possibility of registration without guarantors.
- Even after the transaction, the borrower remains the owner of the apartment. With the only condition that he must not sell his home until the debt is paid off.
- You do not have to report to the lender and say why you are taking out a loan, why do you need so much money, etc. Some lenders do not even require a certificate of income, but it is better to consult with lawyers or consultants who help you in choosing a lender.
What documents for a loan secured by real estate are required by law?
To issue a title loan secured by real estate, two documents are drawn up: a loan agreement and a real estate pledge agreement. Only the mortgage agreement is transferred to the registration of the mortgage limitation and does not entail the transfer of ownership of the housing. Issuing a loan secured by real estate only limits the borrower’s right to sell real estate before the loan is repaid.
Useful tips for borrowers in Wisconsin
Never rush to apply for such loans because various unforeseen situations can always occur. It is convenient to apply for such a loan when you are married and both spouses have paychecks.
Do not partner with questionable creditors. There are many companies on the market that give title loans, even without assessing the solvency. Most likely, deception and loss of housing will follow.
Seek advice and help from specialists. Then they will help you choose a reliable lender, collect documents, take into account all the nuances of a loan secured by an apartment. Experts carefully study the requirements of the lender and help you not to be deceived.