The Facts about Lender-Mandated Cash Auto Equity Loans
Cash auto equity loans are secured loans that are offered to borrowers with a low credit score, in return for the auto equity they possess. These loans are particularly risky for lenders, because if the borrower defaults on payment, the lender must repossess and sell the vehicle to recover the debt.
Because of this risk, lenders take some steps to ensure that the borrower intends to pay back the loan on time. One way lenders can do this is by asking the borrowers to sign statements declaring their plans for the future. Taking cash auto equity loans, your lender may follow a different policy, but one of the things you should expect is to make your lender a few "good faith" promises about your future.
The first thing that a cash auto equity loan agreement will require from you is that you promise not to file for bankruptcy during the term of the loan. You will also have to state that you are not considering bankruptcy at the time of the signing. Lenders have to protect themselves from fraud, and they could lose their entire investment if you were to declare bankruptcy.
In addition, your lender may take steps to keep track of the location of the vehicle that you have offered as collateral. Because auto equity loans are secured by your vehicle title, your lender will have to repossess and sell the vehicle to recover the debt. The loan agreement may require you to promise that you will not change residences during the term of the loan without notifying the lender. This step ensures that the lender will not find it difficult to locate your car if the loan becomes delinquent. Some lenders take even further precautions and take to installing auto GPS tracking systems on collateral vehicles to prevent losing track of the vehicle
Wilshire Consumer Credit is a reputable auto equity company licensed to operate in South Carolina, Phoenix, Arizona, California and New Mexico. They promise flexible agreement terms. All you need to get an auto equity loan is a vehicle title that you own and that is fully or nearly paid up. So if you need cash in a hurry, apply online now and get approval in minutes!