There are many kinds of loans and they all have different terms. Most of the time it is your credit score that will determine the loan that you qualify. Gone are the days that you could not qualify for a loan because you have a law case and are awaiting resolution of the case. If you need money for home improvement or home repairs but have a law suit, you can still qualify for a loan. There are now non-recourse loans that will help you get access to loans despite having a lawsuit and in case the case is not in your favor you are not obliged to repay the loan. It is the best type of loan that you can take while you wait for compensation from the court for an injury that has been caused to you. That means that you can still do home improvement as planned. The terms of non- recourse loans differ depending on the company that is offering it. All in all, it is important that you always go through the FAQ’s for non recourse lawsuit loans to get a deeper understanding of it. Some of the things that are worth noting about non-recourse loans include:
They are like cash advance
A non-recourse loan is more like a cash advance since it is secured by collateral. That also means that in case you lose out on the case you don’t have to pay a dime. The terms that you agreed prior before taking the loan does not change. There is no payment beyond the collateral that you had agreed on.
They don’t demand a credit check
Unlike all other types of loan where a credit check has to be done in order to determine if you qualify for a loan, for a non-recourse loan it is different. Lenders will not check your credit history or your employment status to determine if you qualify for a loan. They will, however, rely on the lawsuit at hand and in some cases, they will need to check with your attorney to get a deeper insight on the case.
You decide on the amount of money you need
Once your non-recourse loan has been approved, you are the one who decides the amount of money that you need. Unlike other kinds of loans that are limiting, this one will give you a range after which you will decide the amount that you need.
You can still get financing even after the lawsuit is over
The fact that the lawsuit is used in determining the amount of loan that you qualify does not mean that even when the lawsuit is over you cannot qualify for a loan. This may happen in the case where your case is closed but you are still receiving periodical structural payments. In some cases, you may need a loan that you will pay with the payments that you are receiving.
Lawsuit loans are expensive
The truth that many companies don’t mention is lawsuit loans are expensive. The lender is taking a big risk in giving you the loan and if you lose out on the case you don’t have to pay back. In a way, they have to compensate for the money that they lose out.