Fraudulent Title Loans
One of the most common types of loan in Nevada is the Title Loans. This type of loan is given to the borrower based on his or her current property. It can be a house, a piece of land or any other property. The Title Loan is a good option for people who have a bad credit. In this case, the lender will assure that the borrower will repay the loan with interest on time and in full. The main advantage of this type of loan is that it gives you the security to your assets.
The second type is called a Deed in Lieu of Foreclosure. This type of loan is given when the owner fails to pay off the mortgage on his property. The lender pays the mortgage, takes over the property and sells it if no buyer is found. If you are looking for such loan, you will need to convince the lender that you are in a bad financial condition and that you will not be able to pay off the loan.
The third type is called a Deed in Lieu of Foreclosure. This type is the same as Mortgage lien. This option is useful for those who do not qualify for Bankruptcy. But in this case, you will need to pay back the loan by yourself. This can also be acquired only if you are still capable of paying off the mortgage.
Another type of loan is called a Reverse Deed. It is like a Mortgage lien. However, this loan needs two signatures to be processed. The first signature is done by the mortgagor and the second one is done by the title holder.
You can find many lenders in your area who provide title loans. You can use the internet to search for them. However, make sure that you do not fall victim to some fraud and identity theft. Check if the lender is accredited by the Better Business Bureau. And, verify the terms and conditions.
Moreover, it is very important to see the contract carefully. This type of loan should provide clear details. For example, it should tell you the right time to pay the loan back. It should state how much money you have to pay and at what interest rate.
As with all types of transactions, make sure that the document is completely understood. Read it carefully and understand it. Sign it only if you understand it. Otherwise, the lender may take advantage of you.
Before closing the deal, make sure that you have fully paid all the bills and loan installments. This is to avoid any problems later on. Once your property has been loaned, you cannot sell it. So, be very careful when taking title loans from lenders.
When a lender has already taken your property through title process, he can ask for legal title insurance. This protects the lender’s interest. If the title is not legitimate, the lender’s claim could be rejected. The title company should help in checking the title. They check whether it is clear and whether the mortgage has already been satisfied.
Sometimes, borrowers do not follow the contract properly. They fail to close their mortgages after they stop taking the title loans. The lender can file a complaint with the court. This will cost you some money. But the costs of fixing the problem should outweigh the benefits you will get.
Another common fraud is when people try to take title loans when they do not have the money to do so. The title company charges a fee for the investigation. Sometimes, they even ask for the money upfront. So you should avoid using the title loans when you do not have the cash.
Fraudulent lending companies do not have any problems announcing their charges to the public. But you should check whether the company charges a regular rate. The general rule is that the charges are inclusive of all fees. The charges should include all investigation and legal fees.