Read in the local paper a about a person in prision getting a home loan while serving time. Explain, is this possible for a lender to do, or a lender willing to lend money if they know the person generates the income behind thru stock, or own a legal business runs it from the jail cell. Give me your take is it legal????
2006-11-01 17:26:09 · 3 answers · asked by ram456456 5 in Politics & Government ➔ Law & Ethics
This is legal for a person in prision to get access to a home loan??? Even if the person is serving more than 10 years
2006-11-01 17:27:13 · update #1
Yes, a person in prison can get a mortgage on a home. The reason is credit history prior to prison. Being in prison by itself is not a negative thing regarding credit. However coupled with poor history priot to will make a lender see you as a much higher risk. Remember, it is not you that represents the money involved, but the real estate property. They evaluate you on your ability to repay the loan. They know if you default, they can repossess and sell the property to recover their investment, wich means time and effort on their part which will reduce their return on their inventment in you, so it comes down to you and how well you are evaluated as a risk for repayment if they make a loan to you. They make their profit on you repaying the loan over time, from the interest. It is in their best interest to get the most profit if you pay the loan in full as scheduled. Anything else, and they get less of a return, say if you pay off early or default and they have to sell the property. If you have a business or something which generates legitimate income suificient to make the monthly payments they will require plus taxes and insurance, then there is no reason NOT to loan you the money and if they refuse you credit, you can take them to court on descrimination grounds. They may, because you are a lawbreaker, charge higher than the market rate in interest because you would be in their opinion, a higher risk than an average employee of a company. That all being said, there is nothing to stop them from seeing a person in prison as a bad risk since they broke the law once, so what stops them from doing it again, so your rating goes down on a subjective point and you would get a much higer interest rate for being higher risk.
Bottom line, yes you can get a mortgage even if you are in prison, it just may be much harder and cost more in a higher interest rate than the average joe with no bad credit history.
I am not a lawyer. I am not a banker. I am only giving you my opinion based on my expereince with my own mortgage being in the military, which is kind of like prson in that military and single is a very high risk category which I equate with that of a prisoner.
2006-11-01 18:00:37 · answer #1 · answered by rowlfe 7 · 0⤊ 0⤋
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2016-12-28 10:24:25 · answer #2 · answered by ? 3 · 0⤊ 0⤋
possibly
2006-11-01 17:34:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋