Is it possible to secure a loan with property?
Do you want to solve your financial situation with a loan? If your close friends or family can’t help you, you cannot acquire consumer loan or it is not possible to obtain some purpose loan then there are several institutions left. They offer loans secured by property.
Beware non-bank sector
In most cases these are loans from so called non-bank sector. These institutions are not classic banks or savings banks but they can be not only regular credit card companies but also extortionate companies. They do not expect you to pay off the loan and are interested in your property with which you secure the loan. Therefore it is wise to beware this kind of loans.
In many cases these loans are used by those who have bad references in debtor register or some other “peccadillo” which means they cannot obtain regular consumer loan. Therefore the rule is, unless the situation really demands this, it is better to avoid these loans. Securing loan with property at non-bank institutions is a very tricky matter. Our history shows how easy it is to end up without property and money.
Beware an arbitration clause
In no case we can recommend you to secure relatively small loan. If someone would want you to secure hundred-thousand loan, you should be aware and back away. Most probably it is one of the above mentioned cases when the creditor awaits you stop paying off. Also it is important to beware too high costs bound with the loan.
Many counterfeits allure you to phone numbers that are more expensive than regular ones or the fees are hidden somewhere else. The contract for non-bank loan should be very carefully read over. Eventually you should not economize and hire an attorney to help you.
Attention should be on so called arbitration clause. Due to this clause all eventual disputes would not be ruled decided court but by arbiter who is very often in alliance with the creditor.