When a person agrees to borrow money from another person or entity and promises that they will pay it back, they effectively take out a loan from the individual that extended them the cash. The individual who takes the money is known as the borrower, and the person or entity that gave them the money is the lender or creditor. Transactions like this happen all over Tennessee each and every day, and when borrowers successfully comply with the terms of their loans, they may eventually pay back their lenders.
Home ownership is a goal of many Jackson residents, though few individuals can purchase real property outright without the help of loans. Financial loans that allow individuals to buy residential properties are mortgages, and mortgages are often held by financial institutions like banks. When individuals stay current on their mortgage payments they, over time, chip away at the obligation that they owe to their mortgage holder. If a payer fails to make payments and goes into default, their mortgage holder may choose to foreclose on their home.
Extending credit or providing a loan to another person is a gamble on the part of the giving party. That is because, despite a contract or agreement that outlines how repayment will be completed, the receiving party may simply refuse to pay their creditor back. When this happens, a creditor may wish to take steps to recoup their financial output, so they do not suffer economic loss.
When a Tennessee resident wishes to secure a loan to buy a home, they may take time to shop around to find the terms and interest rates that will give them the best deal. Once they have applied for their loan and are approved, they may have to work through a number of steps to reach closing. Closing on a financial loan is the process of signing off on the transfer of the loan from the lender and the borrower, and usually involves the signing of many documents by the involved parties.
Creditors in Tennessee have a variety of options for recovering their losses when their debtors fail to make good on their loans. Depending upon the type of loan that the creditor offered to their debtor, they may have different remedies for being made whole. For example, when a creditor offers their borrower a secured loan and it falls into delinquency, that creditor may pursue their losses as secured debt.
Sometimes, when a borrower in Tennessee fails to make payments on a loan, such as an auto loan or credit card account, the lender may need to enlist the services of a collection agency. A collection agency is a business that lenders contract with to recover debts owed to them, usually after the lender has made numerous attempts to collect on the loan on their own.
When a house is foreclosed upon, the proceeds of the sale generally go first to the lender that issued the mortgage. However, sometimes those proceeds are insufficient to cover all that is still owed on the mortgage. When this happens, Tennessee law permits lenders to pursue a deficiency judgement. This is a lawsuit brought against the mortgagor in which the lender seeks the remainder of what they are owed per the terms of the mortgage.
Mergers and acquisitions refer to a variety of legal transactions two businesses undertake to consolidate their companies or assets. A successful merger or acquisition can be financially beneficial to both businesses. It is important for businesses in Tennessee to learn the difference between a merger and acquisition, so they can determine which option is right for them.
When a person is underwater on their mortgage, and is not making the payments they owe, banks will want to make sure they get what they are due. This means that a bank could foreclose upon the property or the property owners might pursue a short sale. There are various reasons why sometimes accepting a short sale offer is better for the bank than pursuing a foreclosure.
Lenders in Tennessee issue mortgages to homeowners with the expectation that the home loan will be paid back on time with interest. Unfortunately, some homeowners do not meet this obligation. When a lender is not receiving what they are due on a mortgage they issued, they may need to initiate foreclosure proceedings.