How to get a Personal Secured Loan?
Sunday, 15. August 2010
I’m trying to obtain a personal secured loan. I need about ,000. I have two real estate properties, but I don’t have too much equity in them. However, I was thinking that maybe I can get a personal secured loan which would pay off both properties and then add the 90k on top of that and then use the title’s of the properties as collateral. After doing the loan calculations, it seems as if getting a personal loan to pay off the houses along with the extra 90k will have a similar monthly payment as the two properties by themselves. Does anyone know where I can get started to look for a creative loan like this? Any advice or guidance would be appreciated.
Zeltar Says:
By definition, a personal loan is an unsecured loan. This means you have nothing to back up the loan except for your reputation. Credit Cards are unsecured loans (or personal loans). Typically, unsecured loans have higher interest rates than secured loans.
By definition, a secured loan is backed by an asset. Most common are auto loans (backed by the car – and of which the bank will repo if you fail to make payments) and mortgages (backed by the house, and of which the bank will force foreclosure upon non-payment). Other common secured loans are aircraft, boats, and RV’s.
Banks are not going to want to provide a secured loan based on properrty values worth less than an appraiser indicates.