Find consolidation loans -Simple loan consolidation form
Credit redemption, also known as debt restructuring or loan consolidation, comes in different categories. It can be total, that is to say that the applicant will want to consolidate all of its credits in course, or partial and in this case, it may for example choose to include only its consumer credit without touching his mortgage. This decision can have two reasons, either it does not really wish to restructure all its conso loans in order to rebalance its budget, or it does not want to break its current credit agreement for several reasons. We will expose here the different possibilities to make a purchase of loans without real estate.
Simple loan consolidation form
The loan consolidation form available at consolidationnow.com`s website is by definition a banking operation which makes it possible to settle all loans in progress in order to repay only one monthly payment. This may be readjusted according to the repayment capacity of the borrower but also its situation. It is in this sense that the repurchase of credits makes it possible to face a momentary fall in income, due to a loss of employment or an accident of life for example a divorce or a death. The new credit facility will also benefit from new conditions, with a new depreciation schedule and a lower interest rate in the contract. In general, the duration chosen is lengthened in order to bring down the monthly payment. Note that this has the effect of increasing the cost of credit.
On the other hand, the redemption of credits can be subscribed with or without guarantee. In most cases, the guarantee presented by the borrower is a mortgage. It allows the financial institution that has granted the loan to cover itself in the event of insolvency of the borrower. The mortgage consists in hiring a property when subscribing to a more or less important credit. It will be seized in case of unpaid and can then be put on sale, because the lender then has the rights to do so. Suffice to say that this is not risk free for the borrower, which is why, many credit applicants do not prefer to choose this option, for fear of seeing their property confiscated.
The repurchase of loans without mortgages, that is to say without bringing a property guarantee is an option mainly offered to borrowers who wish to buy only consumer credit. Be careful, this means that the total amount borrowed, that is to say the totality of the remaining capital due from all loans in progress to which possibly additional cash is added, is not too important. From a certain amount, the lending financial institution must ask for a guarantee, usually in the most common form of a mortgage. In place of real estate, the borrower can provide other guarantees, such as a reliable co-borrower, a guarantor, a wage guarantee or a deposit. These may sometimes help to avoid the mortgage, especially when the borrower’s bank accounts are kept flawless with no payment incidents or recurring overdrafts and savings. These will be strong assets vis-à-vis the request to buy loans without real estate.
The conditions for a redemption of loans without real estate
It is therefore quite possible to buy a mortgage without real estate, that is to say, without being a homeowner and if necessary without putting his real estate mortgage, but also without including a mortgage. When this can be spared by the operation, this is due to several reasons. For example, when the credit agreement ends in a few months, there is no point in including it in the repurchase of credit. The latter having a cost, that is to say in this case the payment of early repayment benefits of the old credit, it turns out that it is not at all profitable and better to wait until the end of the refund without touching it. Another case where the loan consolidation can be partial, without including the home loan is when it is a zero rate loan. As a result, since it is extremely advantageous and has no interest, it is not at all interesting to buy it back because it will then be subject to interest.
In any case, it will be necessary to make a feasibility study to make sure that the project is viable and above all is worth it. This will also make it possible to check whether the borrower has the necessary repayment capacity, that is to say the adapted income, and whether his banking situation is sound. Its debt ratio and its living income will be scrupulously studied in order to establish an optimal financial arrangement. With all the elements in hand, the expert analyst can establish a final estimate and especially the amount of the single monthly payment, while estimating whether the mortgage or not can be saved. It is important to know that the lending bank or financial institution has the obligation to ensure that the future borrower is not only able to repay his new loan, but also aware of all his commitments. He can first make an online simulation to compare his future debt situation through the purchase of credits, with its current repayment situation. Then, in a second step, he will be able to apply for loan consolidation.
Mode of operation of the purchase of loans without real estate
The repurchase of loans without real estate works on the same principle as the repurchase of conventional credits, except that it does not imply real estate as collateral. In this sense, it can be obtained more easily when the borrower has an ideal profile, that is to say a stable job with a preference CDI, which is an advantage for banks and credit institutions. It falls into the category of consumer credit buybacks and includes all consumer credit, ie appropriations allocated, personal loans, revolving loans, as well as bank overdrafts. It is aimed at homeowners, first-time homebuyers, tenants, employees, retirees and the self-employed. Its amount varies from 100,000 to 200,000 euros for a maximum duration of 12 or 15 years maximum.
It will not be necessary to go to a notary to make a mortgage registration on real estate, which has the advantage of saving fees that are added to the total cost of credit. Moreover, this type of redemption is often obtained quickly and easily. This new financing of its debts makes it possible to obtain a better interest rate with a lighter monthly payment. The formalities are also more flexible, as the supporting documents to be collected mainly concern the resources and credits in progress to be bought back.
To obtain a loan buy-out without real estate in the best conditions, it is important to contact a good credit organization, or even an expert on the purchase of credits. Because if it is for the borrower to preserve his property for fear of seeing his property in the hands of a financial institution, we must also choose the best offer and make the right choice. Only an expert comparative analysis done by a serious organization can provide the right answer and ensure the smooth running of the operation.