Ask MetaFilter questions tagged with finance and loans

Figuring out if a bank loan has been charged off?

Anonymous — Thu, 12 Nov 2009 12:43:58 -0800

Figuring out if a bank loan has been charged off? Is it possible to find out if one particular loan made by one particular bank has been charged off (or "written off")? The details, as much as I can relate: it is a single loan (not securitized), for millions of dollars. It is a mortgage loan, I checked the recording documents and can see that the mortgage has not been officially discharged. No news reports about Bank X writing off Big Loan, no analyst reports discussing it. I'm not turning up anything useful at the FDIC or OCC sites, but could be missing something. Nothing in the SEC filings for Bank X. Is there anywhere that would have a record of big loan write-offs? It seems like something that should be reported -somewhere- . I thought of credit reports, but Lendee is a company, not a person. This is in the US.

She works hard for the money...

firei — Sat, 10 Oct 2009 10:05:20 -0800

A friend of mine wants to open a business, and is looking for information on business loans or grants specifically for women. I've been on the SBA and SCORE websites, but haven't been able to find too much info. Everyone always says that there's a lot of financial assistance for women looking to open businesses, but I'm having trouble finding it!

If it helps: I believe she is looking to open a dog grooming/training facility.

Specifics would be awesome, but general links would be alright as well.

Best strategy for paying student loans?

yeoja — Tue, 22 Sep 2009 14:37:41 -0800

I’m in grad school and work full time. I have several Federal student loans in deferment, all of which are subsidized or unsubsidized with different interest rates. I have an extra $500 each month that I'd like to use towards my loans. If I want to have lower monthly payments when my loans go into repayment, should I make extra payments now towards the interest from unsubsidized loans with a lower interest rate or the principal of subsidized loans with a higher interest rate? Or is there a better approach? Background info: I have 1.5yrs left for school, and I’m 90% sure I’ll continue to work full-time until I graduate. Other than my mortgage and these loans, I have no other debt (car and credit cards paid off). I have ~6 months of savings in a high (well, 1.4%) yield savings account.

My loans are distributed something like this:

Loan A: Unsubsidized, 1.8% interest rate, $5,000 balance

Loan B: Unsubsidized, 6.8%, $12,000

Loan C: Subsidized, 2.8%, $6,000

Loan D: Subsidized, 6.8%, $3,000

Right now, I make $150 monthly payments on the unsubsidized interest on Loans A & B. My lender will let me specify how I want to apply the $500 each month (Loan A/B/C/D, interest or principal). I know the usual advice is to target the higher interest rates first (as discussed here), but I’m unsure how this applies with subsidized vs unsubsidized loans. For example, Loan A has a lower interest rate than Loan D, but Loan A has a higher principal balance and is unsubsidized.

I want to make the smartest decision with these payments. My goal is to get rid of my loan fast, but I also want to minimize my monthly payment amount when my loans go into repayment. Should I focus on the principal of Loan B since it’s so high? Or should I spread out the money across the loans? If I have the money to pay off Loan D, should I go ahead and do that?

Risk-aversion shows I'm qualified, right?

Anonymous — Mon, 13 Jul 2009 11:59:57 -0800

Should I take out a full load of student loans to attend a top-6 law school right now? I just got accepted off the waitlist at the last minute. This is not a "should I go to law school?" question; I'm already excited and fully committed.

The question, rather, is how much risk should I take financially in this economy? I was not offered a grant or scholarship (and might have a better chance at being considered for one next year if I apply very early - I put my applications in very near the deadline instead of in the fall). I currently have a job that pays well enough to put some savings away by next year, let's say at least enough to cover living expenses over all 3 years, and hope to come up with some opportunities to enhance my income given the extra time. I also have some personal projects I could finish up and be satisfied overall with spending another year this way before embarking on a long-term, non-interruptible career path like law. Until this waitlist acceptance, I was perfectly content with reapplying next year.

I am passionate about becoming a lawyer but terrified of becoming a debt slave. I can't seriously consider the possibility of committing to a loan payment plan that lasts longer than 5 years; right now, my 5-year payment plan would be $4,000 monthly starting 6 months after graduation.

On the other hand, schools like Columbia, NYU and Chicago are extremely competitive. As I was waitlisted at all 3 this year, I may not be able to count on getting in next year and they don't give deferrals to waitlisted admittees. After applying to other schools, I am certain that these are the only ones I would seriously consider attending, especially on student loans. I think I might be game for big law, but my freedom to choose is more valuable to me than anything, and I don't want to be stuck with it if I genuinely hate it.

Biglaw isn't even hiring right now, and I certainly don't want to place a $200k bet that they will be by 2012. My loans and interest rates are a certainty; the economy and the effects the recession will have on the legal industry and my ability to thrive or survive as a member of it in the near future are anything but certain. If it becomes clear over the next 12 months that student loans this large would be a death sentence for anyone, I could come up with a plan B and be glad to have escaped such a fate, even if being a lawyer remains my first career choice.

So I could be making the biggest financial mistake of my life (there are suddenly no guarantees of summer associateships and huge starting salaries for anyone at any law school?!) - or throwing away the biggest opportunity of my life (admissions are likely to get even more competitive next year, although I do have competitive numbers and would like to chalk up having been waitlisted to having applied quite late and scoring a 6-point increase on the February LSAT after applying with a lower score from December). If I pass up an opportunity to go to my dream school that might not materialize again next year, I'll always regret it; if I find that my life is essentially over after graduation due to crushing debt obligations, I will probably lose the will to go on after a couple years. Which way to go?

How do I get a reasonable loan modification?

ccpearce5 — Mon, 23 Mar 2009 20:14:55 -0800

How do I get a loan modification without ruining my credit? I have heard many conflicting ideas that range from not paying the monthly mortgage to hiring a lawyer to sue. I personally don't need one, but my friend bought two homes over a five year period and both of them were negative amortization loans, so now he has balloon payments that he cannot afford. I'm trying to help him but have gotten conflicting advice.

One lawyer suggested not paying for two months because then mortgage companies know how seriously in trouble you are. I have also heard that if you have too much OR too little money, companies won't bother trying to help.

Does anyone know of some comprehensive resources that can be understood by someone who has some, but not extensive, financial experience?

Is AllWorldPrivateFunding.com legit?

waytogo! — Sat, 27 Oct 2007 14:02:35 -0800

Has anyone used All World Private Funding to get a loan? And if so, what was your experience?

Which student loan is best?

kakes — Mon, 25 Jun 2007 12:22:08 -0800

I'll be borrowing $22,200 to pay for school. All other things being equal, which loan is best? All three options have a 10-year term. Loan #1: 5.55% fixed rate; 1% principal rebate after 12 months; a second 1% principal rebate after 24 months Loan #2: 5.55% fixed rate; zero payments for the last 6 months Loan #3: 6.55% fixed rate; a 3.3% principal rebate after 33 months I feel confident that I can make all payments on-time for the entire length of the loan.

Apply for a loan to help my credit?

MrBCID — Sat, 23 Jun 2007 21:05:05 -0800

I am in my 20's, have no debt and have no need for a loan; should I get one anyways to help my credit? I have a high credit score, and I pay off my credit cards monthly; but I have never taken out a loan, not even student loans... I worry this will hurt me when the time comes to apply for a car loan, home loan, etc...

What kind of loan should I apply for? I would be able to pay off any loan I apply for, but don't know where to begin... I don't need a car nor am I looking to buy a house; so car/home loans are out... I have only heard of personal loans but don't know if this is the best option...

Whatever loan I decide to get would be placed in a savings account accruing 4.5%...

Any help is will be GREATLY appreciated...

Paying for graduate school

dead_ — Thu, 10 May 2007 08:17:45 -0800

Help me figure out the best way to finance graduate school abroad. This may be a bit of a premature post (as I haven't heard back from all of my institutions yet), but here it goes anyway...

I will be attending graduate school in Japan this fall (getting an MA in international relations). Though I already have some money saved up, it isn't nearly enough to cover everything (not just tuition, but living costs, food, transport, etc).

In all likelihood, I will be getting some portion of my tuition discounted by the university, and will also be able to hold a part-time job on campus in addition to some teaching assistantships. Regardless, this is only a minor amount of money coming in, compared with how much will be going out.

So I need to figure out the best way to finance this. I'm looking for advice on specific banks and loans, as well as advice on financing (international) graduate school in general. This is something that I really want to do, and I recognize the major amount of debt it will be putting me under, so any general comments on the matter (positive or negative) would be great. I'm basically looking for advice on financing graduate school. Help!

How to sell an upside down car?

farmersckn — Wed, 15 Nov 2006 17:34:53 -0800

I owe more than my car is worth. My monthly auto-expenses are too great. I would be better off with a truck. Advice? Car: 2006 Toyota Corolla S, 24000 miles, 5 year, 100,000 warranty, Kelley Blue Book says its worth $15000 making me $6000 upside down (See Loan).

Loan: $21000 left to go, $390 per month

Insurance: $350 per month, Progressive, must carry full coverage and $500 deductible. So far Progressive is cheapest. Expect insurance to go up in December (see Record)

Record: 1 speeding ticket, 1 small accident, 1 new speeding ticket will hit in December

Discounts: Will turn 23 in July. Was told this would lower my insurance rate.

Desire: 1 pickup truck in decent shape with decent appearance, to be used for handyman/construction work.

Budget: Paying $800 per month for loan payment and insurance. Would like to be less than $500.

Summary: My car is too expensive, I'm upside down on my loan, I don't need this car, I need a truck. I can't afford the monthly expense for this car. I need something cheaper. I can't sell this car because it is upside down and I need to pay off the loan before I can transfer the title (I assume). I've got one month before this car gets more expensive.

Anyone have a suggestion?

Cosigning for a student loan

charmston — Sat, 01 Jul 2006 19:40:42 -0800

CreditFilter: Does co-signing for my student loans affect my parents' credit? My parents are concerned that cosigning for my student loans (which, before I complete my undergraduate studies, will probably amount to approximately $50,000) will adversely affect their credit. If not their FICO credit score, at least show up as some sort of debt that they are responsible for that might hurt their chances at getting future loans.

Are there any credit or financial experts that might know the specifics regarding this? Many thanks!

How to make the most of college loan repayment?

tomorama — Wed, 24 May 2006 10:00:14 -0800

How can I make the most out of repaying my student loans? I am currently paying back my student loans from college. Each month, I usually make a payment of double or more of the monthly payment amount that the loan holder has established for me. My goal is to pay off my loans as quickly as possible, and to pay as little interest on these loans as I can. The ultimate goal here is to keep as much of my money in my pocket as humanly possible.

Whenever I overpay, I am asked to choose one of the following options:

Choice 1
Pre-Paying Principal- I do not wish to have my next payment due date advanced by the number of additional whole payments made. I understand that funds paid in addition to my present amount due will first be applied to satisfy any outstanding fees and interest and any remaining funds will be applied to my principal balance. I will continue to make payments as scheduled each month.

Choice 2
Paying in Advance - I would like my next payment due date advanced by the number of additional whole payments made. I understand that funds paid in addition to my present amount due will first be applied to satisfy any outstanding fees and interest and any remaining funds will be applied to my principal balance. While I may not have to make my next monthly payment amount, interest will still accrue on my outstanding principal balance.

Their "How are my payments applied" statement says:
Generally, payments are applied first to outstanding late fees (if applicable), then to accrued interest, and then to the principal balance. For information specific to your account, please review the information on the Payment History page.

Am I making the right choice each month? I don't see much of a difference between choices one and two, aside from when the next due date comes around. Aside from which of these choices to make, is there anything else I should do (say, changes to my account structure, monthly payment amount, etc...) that will increase the aforementioned "money-in-my-pocket" factor?

In the end, I guess another thing I am asking is - what sort of things can I do to take full advantage of the college loan repayment process in my favor?

Mexico Construction Loans

wormwood — Mon, 08 May 2006 11:57:54 -0800

I am a small builder who would like to move my operations to a resort area of Mexico to build for the impending baby boomer migration. I have been having trouble finding reasonable sources for construction loans as most developers either pre-sell their units (time consuming) or use Mexican banks, whose rates are prohibitive. Is anyone familiar with any banks that are lending $3 million dollars or more for residential developments to experienced developers? Thanks!

Anyone know how to get out of a car loan you no longer want?

pikachulolita — Thu, 05 Jan 2006 12:13:47 -0800

How can my mom get rid of her car? It doesn't work, numerous attempts to repair it have been unsuccessful (long story), and she still owes money it. Is there some way to get rid of the car altogether without defaulting on her loan and ruining her credit? The unnecessary expenses are really killing her; she's paying an amount equivalent to her rent, and she could get along fine on the bus. She's tried taking it into a couple of shops and while they fix what is immediately wrong, on her drive home another issue always crops up. Even if she were to get it fully repaired, I doubt she could get even close to enough for it to pay off her car loan.

I have heard of something called the "lemon law" covering chronically broke-ass cars and will look further into that, but I know she would need a bunch of documentation if it would even qualify and she really doesn't have the energy to sue over it or anything.

Is there a way out for my mom? If she didn't care about her credit, defaulted on the loan, and got the car repossessed, would she be released from the commitment? Is there any other way out?

my life is in default

Anonymous — Fri, 30 Dec 2005 11:08:53 -0800

I'm in (defaulted) student-loan hell. I have three lenders. I'm in default with all three. (This is 100% due to terrible decisions and denial on my part. Please feel free to chastise me, but note that I'm well aware of my foolishness).

Recently, one of the lenders tracked me down and I started a rehab program. Then another lender tracked me down, and I started another rehab program. While I was glad to finally be on the road out of hell, my finances couldn't stand the strain. I currently have to borrow money from friends just to pay the monthly rehab fees.

I realized that it was only a matter of time before the third lender found me, and at that point I would be totally screwed. So I took some advice and found a company willing to work with me to get my loans consolidated. I'm in this process now, and once it happens, I will be making one monthly payment that I can afford.

But today, the third lender found me. He left me a message and told me to call back ASAP. I don't know what to do. The consolidation won't go through for 30-60 days. I am totally out of funds. I don't have credit cards. I'm sure I can't get a loan. I don't have anything to sell. If I could just somehow hide out for 60 days, I'd be fine. I'm really scared that if I try this, the lender will garnish my wages, in which case I will not be able to pay the other two lenders, and I will be in double default. Once that happens, I won't be able to consolidate.

Any ideas?

Stated Income Home Loans

Instrumental — Tue, 29 Mar 2005 10:31:05 -0800

My wife and I are applying for a home loan. I recently started my own business while she has a normal job. Should we choose a "Stated Income" or a "No Income Verification" loan? Our loan broker suggests using a Stated Income loan by adding our two real incomes together and saying it is her wages. This seems like lying to us....what do you think? A No Income Verification loan is $10,000 more....