In some cases, the Example Loan Agreement between family members is using to avoid court actions by family members. When one member of a family has defaulted on a loan, the mortgage company can go to court to recover money. There are other reasons as well why this type of agreement could be used to avoid court action.
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The way the agreement is used, the lender or bank that forecloses on the property first will pursue legal action to collect the funds. By using the agreement between family members, however, the mortgage company can put the money into an escrow account and collect it after the lawsuit is over. These agreements are often used by individuals who have experienced financial hardship.
The Example Loan Agreement between family members also works for elderly people who have had a stroke. A stroke can affect one's ability to speak. In some cases, a person may not be able to communicate properly and some families do not have the means to purchase a home to assist the person who has been stricken with the disability. This is where the loan agreement can help family members in their efforts to keep the disability intact.
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In many cases, it is not in the best interest of the mortgage company to go to court to force a family member to make payments. The lender may put the money into an escrow account and wait until the case is over. When the time comes to collect the money, the mortgage company can use the escrow account to collect the money and make sure that they are not liable for any judgments that may be levied against them.
When a person is facing a judgment for non-payment of a loan, an Example Loan Agreement between family members is used to prevent this from happening. When a person defaults on a loan, the money is usually put into an escrow account and held until the lawsuit is over. The lender has an interest in this process because it means that it will not have to spend money to pursue legal action against the family.
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In some instances, a person may be in a position to afford the home that they want without having to borrow the money to obtain it. This can cause a person to put off paying off a loan for a long period. By working out an Example Loan Agreement between family members, the person will be able to buy the home without putting any of the family's money at risk.
Another reason as to why a mortgage company may use an Example Loan Agreement is to help a person with a bad credit rating avoid foreclosure. With the recent economic downturn, a lot of people have faced financial hardship and may have had their credit ratings damaged. Some of these people may be forced to turn to a legal battle to get back on their feet.
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The Example Loan Agreement between family members is helpful for anyone in a situation where they may be unable to afford a house on their own. These agreements are often used when the mortgage company is seeking to avoid court action. If someone has defaulted on a loan, an Example Loan Agreement between family members can help in keeping them from losing their home to foreclosure.
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