Is a title lender a predatory lender?

Understanding Car Title Loans Car title loans are generally viewed as an example of subprime lending. Critics argue that car title loans are a form of predatory lending, because lenders are exploiting desperate borrowers who lack clear alternatives.

Are there any problems with mortgage title companies?

In the mortgage origination frenzy of the last few years, many problems occurred in the closing of loans that never should have been closed. The mortgage banking and mortgage lending industries rely upon the expertise of title insurance companies to make sure that mortgage loan closings are carried out properly.

Why does a mortgage company need title insurance?

Lender’s title insurance is meant to protect the mortgage lender if there’s an issue down the line with the title that causes you to lose the house in a property dispute. Mortgage companies require this because if something does go wrong, the insurance policy covers the loan amount.

What should I do if I have a title problem?

Title companies do most of their remediation work behind the scenes. You may not even be aware that some title defects existed and were taken care of before the closing. Other times you may be asked to sign a document to remove or release the lien or title defect. Many title issues can be resolved by filing one of three common documents:

Do you have to sign title if you have mortgage?

If you’re on the title, you’ll also sign certain documents related to the mortgage, regardless of whether you’re on the actual loan, so this ownership document is important.

Where can I get a better title loan?

If you’re having trouble getting approved for a better loan, visit local banks and credit unions, where you have a better chance of qualifying. Online peer-to-peer lenders are also worth a look. If all else fails, somebody close to you might be willing to co-sign and help you get approved.

What happens if you default on a title loan?

Another option is to simply stop paying, but that’s probably not your best option. Defaulting on a loan will damage your credit, and your lender will eventually repossess the car. As a result, you’re left with bad credit and no car, and you’ll probably still owe money.

How often do you have to pay title loan?

When you have a car title loan, most lenders make you repay the loan every month. If you start to miss your monthly payments and continue to miss them without any communication to your lender, the delinquency can result in car title loan default.

What’s the best way to avoid title loans?

Your best bet is to avoid title loans in the first place. Once you put this behind you, get prepared for the next financial challenge. Build up an emergency savings fund of three to six months’ worth of expenses (or preferably more), and improve your credit so that you have more options when you need to borrow.