Auto title loans in Crestview are subprime loans given to borrowers with bad credit who use their auto equity as collateral, allowing consumers to borrow money based on the value of their vehicle.
When you apply for a Small Title Loans, you’ll have to show proof that you hold the title of your vehicle in Crestview. It is important that your vehicle has a clear title and that your car loan is paid off or nearly paid off. The debt is secured by the auto title or pink slip, and the vehicle can be repossessed if you default on the loan.
Some lenders may also require proof of income and/or conduct a credit check, bad credit does not disqualify you from getting approved. Auto title loans are typically considered subprime because they cater primarily to people with bad credit and/or low income, and they usually charge higher interest rates than conventional bank loans.
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Differences Between Auto Equity Loans and Title Loans
If you have ever tried to get a loan modification and got denied or felt like you are getting the run around from your lender, then one reason could be is that your lender will gain more financially by letting home owners go into foreclosure. At the end of the day your lender will make a determination as to whether or not to modify you loan based on what is more beneficial to them. Loan modifications are voluntary for lenders so it's entirely up to them whether or not to modify your loan.
Loan modifications were designed for one set of home owners, which are borrowers who will not be able to continue to make their payments without a modification. Some borrowers just got in over their head and bought a house they couldn't afford from the beginning. Lenders know if they help this type of borrower that they are just delaying the inevitable, which is, even if they modify the loan, the borrower will eventually default again and still end up in foreclosure. For a lender, it's costly to go this route with a borrower and doesn't make financial sense.
Even though lenders have avoided giving loan modifications to borrowers that they know will fall behind even after a payment reduction and also borrowers that could fix the problem without their lenders help, these lenders are currently still behind the eight ball, as they are flooded with submissions and under staffed to keep up with the demand for loan modifications. And as unemployment continues to rise and property values continue to fall, lenders will be playing catch up for months to come.
Another reason lenders may prefer to foreclosure, is if you have more than one mortgage or liens on the property. Which a lot of borrowers have, as when they bought their home a few years back, they got 100% financing and to avoid mortgage insurance they got an 80/20 loan. Also since values where sky rocketing some people went a little further and got a line of credit, so now they have 3 liens against their home.
One option to get out of foreclosure is known as a Deed-in-Lieu of Foreclosure. This is basically signing the title of you home back to your lender, now this can only be done with your first mortgage. Now if you have more than one mortgage on the property then 9 out of 10 times they will tell you NO, this is not an option as the reason is, if they took over title to your property, they would now have to pay off all the other liens attached to the property in order to sell it. But if they go through the foreclosure process, then all the other liens would get wiped out by the foreclosure sale, with the exception of property taxes and the home owners association fees.
So in the case of a foreclosure, lenders would get a clean title and wouldn't have to worry about the expense of those other liens. It's also important to note that a Deed -in-Lieu of foreclosure will reflect on your credit report the same way as a foreclosure.
You need some cash, but you aren’t sure where to get it. In your research, you’ve come across different kinds of loans and options for fast cash. There are Small Title Loans, home equity, secured loans and unsecured loans. There are so many kinds; it can be very confusing to keep them all straight. So what kind of loan sounds like the best deal for you?
Why Your Lender May Rather Go Through the Foreclosure Process
You need some cash, but you aren't sure where to get it. In your research, you've come across different kinds of loans and options for fast cash. There are payday loans, car title loans, home equity, secured loans and unsecured loans. There are so many kinds; it can be very confusing to keep them all straight. So what kind of loan sounds like the best deal for you?
We recommend finding a secured loan! This means that the borrower can offer some form of collateral for the loan. In traditional loans, the lender will rely on the borrowers credit score, if the borrowers credit score is high, the lender will assume that it is safe to lend to this borrower.
And, since it is unlikely that this borrower will default on the loan the lender will offer this borrower very low interest rates. But for those of you who do not have a high credit score, you will need to find another form of secure loan.
If you can offer up something of value that can be used to secure a loan the most common items are houses, stocks, bonds, sometimes jewelry, real estate and cars. Another benefit of a secured loan is that you will get a lower interest rate than you would an unsecured loan. Again, this is because there is less risk to the lender if you fail to pay. They will seize the property put up for collateral if this happens.
A car title loan is a kind of secured loan in that it uses the current market value of your vehicle to secure the funds of the loan. If you own your vehicle and have a clear title to it, this is probably the quickest and easiest way to get the cash you need. It only takes a few minutes to fill out an application and the answer follows in a just a short time.
Remember that it is the borrowers' responsibility to fully understand the terms and conditions of the loan. The borrower is recommended to consult a lawyer, to help clear up any confusion. Be sure to research many lenders so that you do not accidentally get involved with a lender who offers unfair terms and conditions. Before you sign on the dotted line, make sure you understand exactly how much interest you will be paying on the loan, and make sure that there is not a penalty for paying back the loan early.
The reason car title loans are the best option is that not only is geared toward short-term and fast lending- usually for emergency purposes. Also there are not any restrictions on what you can use the money for. It is usually spent on emergencies or to consolidate debt and bills, but it can be spent on whatever you need, the money is there for you. When you are approved, you will get a percentage of the value of the car.
But, it is wise to only take what you really need. This ensures that you won't fall into trouble when paying back the loan. With car title loans, you get to keep the car while you pay the loan. So, your life is not disrupted by this sudden need for cash and you can still get to work and appointments without a hassle.