Title Loans – Ohio
In Ohio, where foreclosure is a very real problem, title loans have become increasingly popular as a way for home owners to meet short-term financing needs. Many homeowners are caught between a rock and hard place when it comes to repaying their mortgage. They don’t want to risk losing their home to foreclosure, but they don’t want to live in the small apartment or house they have purchased. In these situations, the bank, rather than offer a home equity loan that would relieve the homeowner of their financial obligations, often offers them title loans. A title loan in Ohio can be both useful and unproductive if handled incorrectly.
The trouble with many title loans in Ohio lies in the fact that they are offered by lenders who do not hold the title on the property. They are referred to as “paper title loans” and, like all other loans, they carry interest rates and pay off amounts that vary from one lender to the next. For this reason, Ohio title loans can be particularly risky for borrowers. These loans are often issued by people who may not be very credit worthy. As a result, many title loans in Ohio end up being returned to the lender at the end of the term. When this happens, the Ohio lender usually has no choice but to charge the borrower more money, increasing the total cost of the loan.
Because payday loans are also offered by many lenders in Ohio, these loans are particularly dangerous for borrowers. Payday loans, like most other short term loans, come with extremely high interest rates. Because they are granted without any type of credit check or collateral and come due within just a few days of the borrower getting the loan, they encourage borrowers to borrow money quickly, sometimes going above the amount that can be easily paid back.
This is what makes Ohio auto title loans such a risky prospect. Payday lenders in Ohio are required to follow federal and state laws. However, despite their good faith efforts to adhere to those laws, some lenders have been caught illegally repossessing cars and holding illegal title loans in disguise. Unfortunately, because these repossession cases are often brought by rogue finance companies, the lack of clear legal evidence to support the repossession can often make the case weak.
Auto title loans in Ohio are not only issued by cash advance lenders. There are also pawnshops and dealerships that provide these loans as well. While the interest rate and loan amount remain relatively low, the penalties associated with repaying car title loans in Ohio are quite severe. In some cases, the penalties can be quite high. Therefore, even if a borrower does get approved, it is highly recommended that they repay the loan on time in order to avoid the possibility of heavy penalties.
Repossession of property in Ohio is often caused by the borrower doing things in a way that causes the lender to repossess the vehicle. For example, if the person has financed a vehicle through a cash advance lender, and they fail to repay the loan amount in a timely manner, the lender will have every right to take the vehicle if they feel that it has been illegally obtained. When this happens, the lender has a series of options available to them to attempt to recover the funds that have been lent out. Two of these options are full repossession and summary repossession.
Full repossession is when the lender attempts to seize the vehicle through a court order. The most common thing that occurs in this process is that the vehicle’s title will be taken without any chance of chance to appealing the decision through legal channels. If the party borrowing the title loans Ohio, they must provide proof of the car value before the lender can proceed with the repossession. If the value of the car is too low or non-existent, the lender may end up having to give the title back to the borrower. A great thing to know about title loans Ohio is that the lender is often allowed to seize the vehicle until the full amount of the loan has been paid off.
Summary repossession occurs when the lender attempts to take over the vehicle by attaching a lien on it. This is done by filing an illegal lien on the title loans Ohio borrower has provided. This will continue until all of the funds provided through the loan have been repaid. summary repossession is considered one of the easiest types of title loans to get in the state of Ohio.