Smaller lenders see opportunities in SBA loan programs - Arizona Republic
16.02.09
Arizona SBA loan volume and total dollars lent in 2009 are down 62 percent and 65 percent, respectively, over the first quarter last year. The Arizona SBA office has seen a net loss of 25 lenders since September, the majority of which are, or were before mergers or failures, large banks with a national presence.
The only new lenders to replace those lost are small operations such as Avondale-based West Valley National Bank, also serving Buckeye, and soon, the two-branch Yuma Community Bank.
Many community banks are in a good position to make SBA-backed loans because they did not make risky commitments, or participate in the derivatives and mortgage markets the way large banks did.
"(They) were prudent in their lending. They didn't rely on hot money to fund growth . . . and the vast majority are well-capitalized," said Bob Seiwert, a senior vice president with the American Bankers Association.
However, many also lack the training required to participate in SBA programs.
What Loan company will take over my federal student loans when the loans are in default?
Aug 26, 2008 by Dat_1_Chiq | Posted in Financial Aid
What Loan company will take over my federal student loans when the loans are in default so I can go back to school?
My loans are government loans from Saillie Mae. I owe them under $5000.
I heard about this company that will take over your school loans from them but I don't know the name of the company.
I am at the point where I can't get a federal student loan until I pay this off.
When your federal educational loans are in default, you have several options:
You can repay the loan in full.
You can negotiate a new payment plan with your lender.
You can "rehabilitate" your loan.
You can consolidate your loan.
Obviously option one is rarely attractive or possible for defaulted borrowers.
Option two (renegotiate) should be investigated fully - most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with.
Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount.
Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple - a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt - a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and - in the end - you'll pay far more back than you would have paid on the original loan.
As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 - is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?"
See - in the end, you'll pay me back $170 instead of $100 - that's how a consolidation loan works. But remember - we're not talking a $100 loan for a couple of weeks - by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan.
I've attached some information about consolidating from the Department of Education - take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers.
Good luck to you!
NotAnyoneYouKnow | Aug 26, 2008
Right now it's taking over 9 months of consecutive payments to get out of 'default'. I have no way of knowing which lender is going to take over your loan because quite frankly, student lenders have really clamped down on who they will work with.
This can also mean that you could stay in collections until it's paid off.
The collection agency will work to find a lender to take your loan back over once you're out of collections.
Once you are deemed out of 'default', you can then apply for student financial aid.
beut_els_guese | Aug 26, 2008
What Loan company will take over my federal student loans when the loans are in forbearance?
Aug 26, 2008 by Dat_1_Chiq | Posted in Financial Aid
What Loan company will take over my federal student loans when the loans are in forbearance so I can go back to school?
My loans are government loans from Saillie Mae. I owe them under $5000.
I heard about this company that will take over your school loans from them but I don't know the name of the company.
No one will "take over" your loans. You will still owe the money to your lender when you are in forbearance. They will simply add interest every month while you are making payments.
If you are asking about defaulting the lender will just contract out with a collection agency to start calling and hounding you to mail them payments. If you make 6 to 12 months worth of willing and reasonable payments you can ask your lender to "rehabilitate" your loan. This is when you are issued a new loan and pay off the one in default so you can get federal fin aid again. Again, rehabilitation can only be done after you have made 6 to 12 months of payments.
Found-1 | Aug 26, 2008
What loan companies will give you a loan for a motorcycle if your credit is really bad?
Oct 06, 2007 by ali | Posted in Credit
I helped an ex get a motorcycle and now need him to repay me. He needs to take out a loan and repay me or buy the bike from me. His credit is horrible but there has to be places that will still give you a loan. Please help me with advice!
All I can say is, if you own the motorcycle, take it back. If he does, tell him to get a title loan. He can make payments but depends on what he still owes you.
jsfnita | Oct 06, 2007
How about Gary Coleman with check in cash?
vaneo1 | Oct 06, 2007
Work with the dealer who is selling the bike. They usually can hook you up with a way of securing a loan for a bike. Sometimes even with bad credit.
Wayne W | Oct 06, 2007
Who on earth is going to lend money for that? Why don't you suggest he sell it? Motorcycles are not only a loud nuisance, they are usually just a fashion statement rather than a means of transportation. An impractical and expensive luxury item.
Tom B | Oct 06, 2007
Most loan companies and bank's won't loan money for an item that is considered a luxury item. A car you can usually get with bad credit because it gets you to work. Motorcycles, Atv's, etc are basically considered man toy's. And yes you can drive a motorcycle to work, but most people don't consider this their primary transportation.
appenzellar | Oct 06, 2007
Can I take out a home loan for land and a manufactured loan?
May 08, 2007 by Jak K | Posted in Renting & Real Estate
By home loan I mean a home loan and not a personal property loan like on a trailer home/manufactured home in a trailer court. I qualified for a home loan and I want to keep it cheap, so I want to purchase a piece of land and a manufactured home. Wil this work as a home loan if its on private land?
Wow, there is quite the array of scams out there! Why would anyone take out a loan from the internet without talking to someone face to face?
To have a mortgage loan you must have land involved, so no trailer park rentals. Lender's are not fond of mobile homes because they lose value - unlike a stick-built home which will appreciate in value. You are unlikely to find 100% financing for a mobile home. 90% or less is the norm and that is with good credit. Your interest rate will be higher as well.
If you are buying this as an investment (in your own future-not as an investment property) you should look into a modular home. Anything but a mobile. You won't get out what you put into a mobile. That said, there are some very nice mobile homes out there.
thinking-guru | May 08, 2007
no/yes
catchmeha | May 08, 2007
Want a mobile Home Loan? If the home is in a park on rented land financing will be MUCH easier.
Is student loan still tax deductable when refinancing a student loan with a personal loan?
Sep 04, 2007 by Andrew M | Posted in United States
My daughter has two very high interest student loans. Her credit won't let her do anything, but I can "refinance" it with me getting the loan using my credit. But is it still a "student" loan that she can deduct. She is making the payments and her name will be also on the loan (ironically, she will co-sign for me). This seems to be some gray area once the loan gets moved around. Just want to make sure the "chain of custody" still makes the new loan interest tax deductable. Hope this made sense and thanks for your help.
Nope, sorry, but personal loan won't qualify, as you will have nothing in writing to say that it is student loan interest.
PepsiLime | Sep 04, 2007
It wasn't that very clear, but from what I understood your co-signing on the loan. She'll pay for the loan's premium and interest. and that's about it ...
Remember: Who ever pays the student interest, that person will have the right to deduct those interest payments on their tax return (up 2,500).
The only thing that I can figure that will absolutely confirm that you are paying a student loan is that if at the beginning of the tax season, you receive a 1098-E "Student Loan Interest Statement" from your Lender.
mechbasket | Sep 04, 2007
If I consolidate my student loan with a personal loan can I still write off the interest?
May 14, 2008 by MLE | Posted in United States
I had a federal student loan which I consolidated about 8 years ago to someone who eventually sold that loan to Citibank. I pay about 8.35% in interest. I am considering paying off that student loan with a personal loan where I can get a better interest rate. If I do this will I still be able to write off the interest I pay on my taxes?
Nope. It will no longer be a student loan then. You may be able to consolidate several student loans into another student loan at a better rate, but if you pay it off with a personal loan you'll be left with a non-deductible personal loan.
bostonianinmo | May 14, 2008
How does a home equity loan work?
Mar 19, 2007 by newmoon | Posted in Credit
I need to know all the details and if it is a good choice. I have payed off my vehicle and credit cards and have none, but I have alot of student loan debt. Our dilema are the student loans. And paying them. I have heard about home equity loans and heard about being tax deductible. How do they work? Do they look bad on your credit? How much can you borrow ? Does it add to the years to pay off your house? We only have eleven years left to pay as it is right now. Just wondering what is a good option. I even thought that after I graduate and am working that my pay checks can go all to my student loans. I am just looking for some good ideas without having to stress out about debt and bills and such. We are trying to pay our bills off and so far have done good. But those student loans are looming in the background.
I'm not sure why you would want to get a home equity loan to pay off student loans. Typically interest rates on student loans are much lower than home equity loans. It is true that you can use interest paid on a home equity loan as a tax deduction, but you can also use interest paid on student loans as a deduction.
PCL-R | Mar 19, 2007
a home equity loan is a loan tha you can borrow from. its just like a second mortgage. yes it will add to how much longer you will own you home. you can borrow the difference in how much left you have to pay on your home and what you already paid. shot me an email if you would like me to help you get this loan. depending on what state you live in.
cmruffin1 | Mar 19, 2007
Pulling equity out of your house does not sound like a good option to refinance your student loans. You said you are trying to pay your bills off, what you will actually be doing is trading out student loan debt for home equity debt, which is a bad trade off and is not paying off your bills since you won't be reducing your debt. Most likely the student loans will carry a lower interest rate than the home equity loan, but more importantly, if you can't afford to make student loan payments at some point in your life your lender will work with you because it is unsecured debt. If you fall on hard times and can't pay your ORIGINAL purchase money mortgage, the lender can foreclose on your home since that was the collateral but (in most cases) can't come after your other assets. When you refinance your home, pull equity out of your home, or accrue any non-purchase money debt against your home you are exposing the rest of your assets to your lender. If you elect to do what you suggest and you are unable to make payments at some point in your life, your lender can come after all of your assets as opposed to none, with the student loan.
Also, student loan interest is tax deductible.
Chris M | Mar 19, 2007
How exactly do 'interest only' mortgage loans work? When do I pay on the principle of such a loan?
May 17, 2007 by ronidl76 | Posted in Renting & Real Estate
I know APR loans are a bad idea, but how would an interest-only loan work? Would it still be a 30 year note, or do they extend the loan? Would I be able to get a fixed rate with an interest-only mortgage loan?
In an interest-only loan or mortgage the borrower only pays interest each month. This makes it cheaper than a conventional mortgage, in which part of each month's payment goes towards the principal and part goes towards interest. These loans have become popular because the monthly payments are lower, allowing borrowers to afford a larger home.
However, these loans can be dangerous, especially in a down housing market. The interest rates are generally fixed for the first 1, 3 or 5 years. After that, they convert to a conventional loan, with a higher monthly payment. Most borrowers take on these loans because they assume they will sell the home before the interest rate increases. In a down market, they may not be able to sell. If they cannot afford the increased payment, they may have to default on the loan, and foreclose on the home. So, when the rate starts to adjust, you would need to refinance again. And, either get a fixed or another interest only adjustable. And, yes, I do believe you mean ARM. Although, if you have extra money every so often, you can pay down the principal in extra payments.
Kim F | May 17, 2007
What student loan company has the lowest interest rate?
Feb 13, 2008 by Shon | Posted in Financial Aid
I currently have a nelly mae loan(sallie mae) and they are way too high. Whats a good loan company for me to look at for next school year? PLEASE ONLY ANSWER IF YOU ACTUALLY HAVE TAKEN OUT A LOAN WITH THE PLACES YOU RECOMMEND.
Federal loans are regulated by the government so all the rates are the same no matter what bank you take the loan from. Perkins loans are 5%. Stafford Loans are 6.8% and some of them the government pays the interest while you are in school. I'd stay away from any Private student loans, they are EVIL!
Good luck
Found-1 | Feb 13, 2008
Does a student loan and a bank loan affect your credit the same way?
Aug 29, 2007 by videogamer1979 | Posted in Credit
I have one credit card ( revolving credit ) and I have one student loan ( fixed monthly payments ). I want to keep one revolving account and one fixed account. Would a bank loan that pays off the student loan look better as a fixed loan? I guess my question is: Do they both count as fixed loans or is the bank loan a more "authentic" fixed loan?
doesnt matter....they're both 'installment' loans on your credit report. i wouldnt take a bank loan because MOST LIKELY the interest isnt tax deductible like the student loan.
i would advise to have 2-3 credits...2 installment loans....can be student loan, auto loan or other loan...and a MORTGAGE!
make sure you keep low balances are on revolving accounts...and you should be go to go.
Carolinahomerates.com | Aug 29, 2007
Duy-Loan Le, Women of Vision for Leadership
Duy-Loan Le was honored as the 2007 Women of Vision Award Recipient for Leadership by the Anita Borg Institute for Women and Technology.
ReutersMortgage bankers cut U.S. loan origination forecastLos Angeles Times, CARates for a 30-year fixed home loan rose to 5.47 percent on June 19, according to Bankrate.com. The Fed's in a difficult spot, said Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, US mortgage group cuts loan forecast as rates jump MBA expects fewer home loans The Business Journal of Milwaukee Mortgage bankers: rates to rise on home loans
ReutersDaimler deal, state loan seen unlikely for PorscheReutersDE) could be running out of options to repair its finances, with Berlin set to reject its request for a state loan and a purported stake sale to Daimler (DAIGn.DE) unlikely, analysts said on Monday. "The Kreditanstalt fuer Wiederaufbau (KfW) wants us Econ Ministry: No Decision Yet On Porsche, Arcandor German government planning to deny Porsche's loan request Berlin ready to deny Porsche a state loan
JP Morgan's $1.525B Credit Card Loan-Backed To Sell MonWall Street Journal(JPM) sold a $1.525 billion credit card loan-backed deal Monday, according to a person familiar with the matter. The deal, dubbed CHAIT 09-A5, was increased in size from an original $1 billion. The self-led bond, which comes at the heels of a Citigroup Consumer Loan-Backed Market Steadies, Sees More Issuance Chase Unit To Offer Non-TALF ABS Chase to sell $1 bln of non-TALF eligible ABS
Wired NewsAP source: Ford, Nissan, Tesla to get govt loansThe Associated PressEnergy Secretary Steven Chu was scheduled to announce the loan funding for Ford, Nissan Motor Co. and Tesla Motors Inc. on Tuesday in Dearborn, Mich., the officials said. They requested anonymity because an official announcement was pending. Ford to win retooling loans Ford, Nissan, Tesla Said to Get US Loans for Efficient Cars Tesla Scores A Federal Loan To Build Cars
Straits TimesFord To Get DOE Loans To Retool Plants -SourcesCNNMoney.com(F) will be among the first beneficiaries of a $25 billion loan program created by Congress to help auto makers retool their factories to produce advanced-technology vehicles. Energy Secretary Steven Chu plans to announce the award to Ford at an event Ford reportedly to receive Energy Dept. loans Ford to receive US government loans AP source: Ford to get loan from development fund
ReutersMortgage bankers cut U.S. loan origination forecastLos Angeles Times, CARates for a 30-year fixed home loan rose to 5.47 percent on June 19, according to Bankrate.com. The Fed's in a difficult spot, said Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, US mortgage group cuts loan forecast as rates jump MBA expects fewer home loans The Business Journal of Milwaukee Mortgage bankers: rates to rise on home loans
ReutersDaimler deal, state loan seen unlikely for PorscheReutersDE) could be running out of options to repair its finances, with Berlin set to reject its request for a state loan and a purported stake sale to Daimler (DAIGn.DE) unlikely, analysts said on Monday. "The Kreditanstalt fuer Wiederaufbau (KfW) wants us Econ Ministry: No Decision Yet On Porsche, Arcandor German government planning to deny Porsche's loan request Berlin ready to deny Porsche a state loan
Wired NewsAP source: Ford, Nissan, Tesla to get govt loansThe Associated PressEnergy Secretary Steven Chu was scheduled to announce the loan funding for Ford, Nissan Motor Co. and Tesla Motors Inc. on Tuesday in Dearborn, Mich., the officials said. They requested anonymity because an official announcement was pending. Ford to win retooling loans Ford, Nissan, Tesla Said to Get US Loans for Efficient Cars Tesla Scores A Federal Loan To Build Cars
Straits TimesFord To Get DOE Loans To Retool Plants -SourcesCNNMoney.com(F) will be among the first beneficiaries of a $25 billion loan program created by Congress to help auto makers retool their factories to produce advanced-technology vehicles. Energy Secretary Steven Chu plans to announce the award to Ford at an event Ford reportedly to receive Energy Dept. loans Ford to receive US government loans AP source: Ford to get loan from development fund
