seacured loans
Secured loan
From Wikipedia, the free encyclopedia
(Redirected from Secured debt)• Ten things you may not know about images on Wikipedia •Jump to: navigation, search
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral — in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower. From the creditor's perspective this is a category of debt in which a lender has been granted a portion of the bundle of rights to specified property. The opposite of secured debt/loan is unsecured debt, which is not connected to any specific piece of property and instead the creditor may satisfy the debt against the borrower rather than just the borrower's collateral.
Contents [hide]
1 Purpose
2 Types
3 United States Law of Debt Secured by Property
3.1 How to create secured debt
4 See also
5 External links
[edit] Purpose
There are two purposes for a loan secured by debt. In the first purpose, by extending the loan through securing the debt, the creditor is relieved of most of the financial risks involved because it allows the creditor to take the property in the event that the debt is not properly repaid. In exchange, this permits the second purpose where the debtors may receive loans on more favorable terms than that available for unsecured debt, or to be extended credit under circumstances when credit under terms of unsecured debt would not be extended at all. The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt.
[edit] Types
One popular type of secured loan that is normally only available at a bank or credit union is the savings secured loan. In this type of loan, the borrower must have a savings account with the creditor. A portion of the money in this account is used as collateral to secure a loan equal to the amount pledged. This money is then frozen in the account but continues to earn interest. As the loan is repaid the secured portion of the savings account is freed. This has advantages for both the creditor and the borrower. If the borrower defaults on the loan the collateral is already in the creditor's possession so it is a very low risk. As a result, the creditor usually offers a much lower interest rate. The disadvantage of this type of loan is that it is limited by the available fund in the savings account.
A mortgage loan is a secured loan in which the collateral is property, such as a home.
A nonrecourse loan is a secured loan where the collateral is the only security or claim the creditor has against the borrower, and the creditor has no further recourse against the borrower for any deficiency remaining after foreclosure against the property.
A foreclosure is legal process in which mortgaged property is sold to pay the debt of the defaulting borrower.
A repossession is a process in which property, such as a car, is taken back by the creditor when the borrower does not make payments due on the property. Depending on the jurisdiction, it may or may not require a court order.
[edit] United States Law of Debt Secured by Property
In the case of real estate, the most common form of secured debt is the lien. Liens may either be voluntarily created, as with a mortgage, or involuntarily created, such as a mechanics lien. A mortgage may only be created with the express consent of the title owner, without regard to other facts of the situation. In contrast, the primary condition required to create a mechanics lien is that real estate is somehow improved through the work or materials provided by the person filing a mechanics lien. Although the rules are complex, consent of the title owner to the mechanics lien itself is not required.
In the case of personal property, the most common procedure for securing the debt is described through the Uniform Commercial Code or UCC. This statute provides a system of forms and public filing of documents by which the creditor's interest in the property is made known.
In the event that the underlying debt is not properly paid, the creditor may decide to foreclose the interest in order to take the property. Generally, the law that allows the secured debt to be made also provides a procedure whereby the property will be sold at public auction, or through some other means of sale. The law commonly also provides a right of redemption, whereby a debtor may arrange for late payment of the debt but keep the property.
[edit] How to create secured debt
Debt can become secured by a contractual agreement, statutory lien, or judgment lien. Contractual agreements can be secured by either a Purchase Money Security Interest (PMSI) loan, where the creditor takes a security interest in the items purchased (i.e. vehicle, furniture, electronics); or, a Non-Purchase Money Security Interest (NPMSI) loan, where the creditor takes a security interest in items that the debtor already owns.
[edit] See also
Bankruptcy
Title loan
1. Secured Loans UK - Secured Personal Loans - accepted.co.uk
Search and compare over 350 secured loan plans to find the best loan deal for you. Read our articles on secured loans to get more info
URL: http://www.accepted.co.uk/
[Source: AllTheWeb] [Site Preview]
2. Secured Loans UK - Secured Personal Loans - accepted.co.uk
Search and compare over 350 secured loan plans to find the best loan deal for you. Read our articles on secured loans to get more info
URL: http://www.accepted.co.uk
[Source: Altavista] [Site Preview]
3. Secured loan - Wikipedia, the free encyclopedia
... this account is used as collateral to secure a loan equal to the amount pledged. ... UK-based MoneySavingExpert's article on the pros and cons of secured loans ...
URL: http://en.wikipedia.org/wiki/Secured_loan
[Source: AllTheWeb] [Site Preview]
4. Compare Secured Loans Online - Secured.co.uk
... Secured Loans Onlinesecured.co.uk, Your Search Your Results Apply Get your loan ... ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. LOANS ARE SECURED ON ...
URL: http://www.secured.co.uk
[Source: Altavista] [Site Preview]
5. Compare Secured Loans Online - Secured.co.uk
... Secured Loans Onlinesecured.co.uk, Your Search Your Results Apply Get your loan ... ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. LOANS ARE SECURED ON ...
URL: http://www.secured.co.uk/
[Source: AllTheWeb] [Site Preview]
6. Cheap Secured Loans & Best Home Improvement Loans Online
Cheap Secured Loans Finder with best home improvement, car, debt consolidation, wedding, ... Loans Finding the best UK loan can be very confusing at times. ...
URL: http://www.adviceonline.co.uk/personalloans
[Source: Altavista] [Site Preview]
7. Cheap Secured Loans & Best Home Improvement Loans Online
Cheap Secured Loans Finder with best home improvement, car, debt consolidation, wedding, ... Loans Finding the best UK loan can be very confusing at times. ...
URL: http://www.adviceonline.co.uk/personalloans/
[Source: AllTheWeb] [Site Preview]
8. The Help Group - Secured loans, Unsecured loans, Mortgages, Debt ...
Homeowner loans, mortgages and debt help to suit any circumstances. Let The Help Group match you to the loan, mortgage, debt plan (IVA, Debt Management) which best ...
URL: http://www.thehelpgroup.co.uk
[Source: Altavista] [Site Preview]
9. The Help Group - Secured loans, Unsecured loans, Mortgages, Debt ...
Homeowner loans, mortgages and debt help to suit any circumstances. Let The Help Group match you to the loan, mortgage, debt plan (IVA, Debt Management) which best ...
URL: http://www.thehelpgroup.co.uk/
[Source: AllTheWeb] [Site Preview]
10. Netloans
Looking for a secured loan? Netloans provide loans for homeowners within the UK. ... Employed borrowers - Loans available from £10,000 to £150,000 - Secure on Homes ...
URL: http://www.netloans.co.uk
[Source: Altavista] [Site Preview]
From Wikipedia, the free encyclopedia
(Redirected from Secured debt)• Ten things you may not know about images on Wikipedia •Jump to: navigation, search
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral — in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower. From the creditor's perspective this is a category of debt in which a lender has been granted a portion of the bundle of rights to specified property. The opposite of secured debt/loan is unsecured debt, which is not connected to any specific piece of property and instead the creditor may satisfy the debt against the borrower rather than just the borrower's collateral.
Contents [hide]
1 Purpose
2 Types
3 United States Law of Debt Secured by Property
3.1 How to create secured debt
4 See also
5 External links
[edit] Purpose
There are two purposes for a loan secured by debt. In the first purpose, by extending the loan through securing the debt, the creditor is relieved of most of the financial risks involved because it allows the creditor to take the property in the event that the debt is not properly repaid. In exchange, this permits the second purpose where the debtors may receive loans on more favorable terms than that available for unsecured debt, or to be extended credit under circumstances when credit under terms of unsecured debt would not be extended at all. The creditor may offer a loan with attractive interest rates and repayment periods for the secured debt.
[edit] Types
One popular type of secured loan that is normally only available at a bank or credit union is the savings secured loan. In this type of loan, the borrower must have a savings account with the creditor. A portion of the money in this account is used as collateral to secure a loan equal to the amount pledged. This money is then frozen in the account but continues to earn interest. As the loan is repaid the secured portion of the savings account is freed. This has advantages for both the creditor and the borrower. If the borrower defaults on the loan the collateral is already in the creditor's possession so it is a very low risk. As a result, the creditor usually offers a much lower interest rate. The disadvantage of this type of loan is that it is limited by the available fund in the savings account.
A mortgage loan is a secured loan in which the collateral is property, such as a home.
A nonrecourse loan is a secured loan where the collateral is the only security or claim the creditor has against the borrower, and the creditor has no further recourse against the borrower for any deficiency remaining after foreclosure against the property.
A foreclosure is legal process in which mortgaged property is sold to pay the debt of the defaulting borrower.
A repossession is a process in which property, such as a car, is taken back by the creditor when the borrower does not make payments due on the property. Depending on the jurisdiction, it may or may not require a court order.
[edit] United States Law of Debt Secured by Property
In the case of real estate, the most common form of secured debt is the lien. Liens may either be voluntarily created, as with a mortgage, or involuntarily created, such as a mechanics lien. A mortgage may only be created with the express consent of the title owner, without regard to other facts of the situation. In contrast, the primary condition required to create a mechanics lien is that real estate is somehow improved through the work or materials provided by the person filing a mechanics lien. Although the rules are complex, consent of the title owner to the mechanics lien itself is not required.
In the case of personal property, the most common procedure for securing the debt is described through the Uniform Commercial Code or UCC. This statute provides a system of forms and public filing of documents by which the creditor's interest in the property is made known.
In the event that the underlying debt is not properly paid, the creditor may decide to foreclose the interest in order to take the property. Generally, the law that allows the secured debt to be made also provides a procedure whereby the property will be sold at public auction, or through some other means of sale. The law commonly also provides a right of redemption, whereby a debtor may arrange for late payment of the debt but keep the property.
[edit] How to create secured debt
Debt can become secured by a contractual agreement, statutory lien, or judgment lien. Contractual agreements can be secured by either a Purchase Money Security Interest (PMSI) loan, where the creditor takes a security interest in the items purchased (i.e. vehicle, furniture, electronics); or, a Non-Purchase Money Security Interest (NPMSI) loan, where the creditor takes a security interest in items that the debtor already owns.
[edit] See also
Bankruptcy
Title loan
1. Secured Loans UK - Secured Personal Loans - accepted.co.uk
Search and compare over 350 secured loan plans to find the best loan deal for you. Read our articles on secured loans to get more info
URL: http://www.accepted.co.uk/
[Source: AllTheWeb] [Site Preview]
2. Secured Loans UK - Secured Personal Loans - accepted.co.uk
Search and compare over 350 secured loan plans to find the best loan deal for you. Read our articles on secured loans to get more info
URL: http://www.accepted.co.uk
[Source: Altavista] [Site Preview]
3. Secured loan - Wikipedia, the free encyclopedia
... this account is used as collateral to secure a loan equal to the amount pledged. ... UK-based MoneySavingExpert's article on the pros and cons of secured loans ...
URL: http://en.wikipedia.org/wiki/Secured_loan
[Source: AllTheWeb] [Site Preview]
4. Compare Secured Loans Online - Secured.co.uk
... Secured Loans Onlinesecured.co.uk, Your Search Your Results Apply Get your loan ... ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. LOANS ARE SECURED ON ...
URL: http://www.secured.co.uk
[Source: Altavista] [Site Preview]
5. Compare Secured Loans Online - Secured.co.uk
... Secured Loans Onlinesecured.co.uk, Your Search Your Results Apply Get your loan ... ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. LOANS ARE SECURED ON ...
URL: http://www.secured.co.uk/
[Source: AllTheWeb] [Site Preview]
6. Cheap Secured Loans & Best Home Improvement Loans Online
Cheap Secured Loans Finder with best home improvement, car, debt consolidation, wedding, ... Loans Finding the best UK loan can be very confusing at times. ...
URL: http://www.adviceonline.co.uk/personalloans
[Source: Altavista] [Site Preview]
7. Cheap Secured Loans & Best Home Improvement Loans Online
Cheap Secured Loans Finder with best home improvement, car, debt consolidation, wedding, ... Loans Finding the best UK loan can be very confusing at times. ...
URL: http://www.adviceonline.co.uk/personalloans/
[Source: AllTheWeb] [Site Preview]
8. The Help Group - Secured loans, Unsecured loans, Mortgages, Debt ...
Homeowner loans, mortgages and debt help to suit any circumstances. Let The Help Group match you to the loan, mortgage, debt plan (IVA, Debt Management) which best ...
URL: http://www.thehelpgroup.co.uk
[Source: Altavista] [Site Preview]
9. The Help Group - Secured loans, Unsecured loans, Mortgages, Debt ...
Homeowner loans, mortgages and debt help to suit any circumstances. Let The Help Group match you to the loan, mortgage, debt plan (IVA, Debt Management) which best ...
URL: http://www.thehelpgroup.co.uk/
[Source: AllTheWeb] [Site Preview]
10. Netloans
Looking for a secured loan? Netloans provide loans for homeowners within the UK. ... Employed borrowers - Loans available from £10,000 to £150,000 - Secure on Homes ...
URL: http://www.netloans.co.uk
[Source: Altavista] [Site Preview]
posted by lockat at
11:40 PM
1 Comments:
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