My mom is in debt deep and takes out loans all the time to either pay the mortgage or pay off another debt. Why do loan companies allow this, except for the fact that they don't care?
2007-07-09 14:14:39 · 3 answers · asked by existingtobe 3 in Business & Finance ➔ Credit
But take a look at the interest rate.It's steep enough so that if some do default, they still make money.
2007-07-09 14:20:58 · answer #1 · answered by TedEx 7 · 0⤊ 0⤋
Homeowners typically qualify for loans that non-homeowners don't. You could both have the exact same crappy FICO score but if she owns a home and you don't, then she'll qualify for a lot more than you do.
2007-07-09 14:22:32 · answer #2 · answered by Chad 5 · 0⤊ 0⤋
well the thing is they are making a lot of money off of the little bit that they loaned you
2007-07-09 14:56:07 · answer #3 · answered by wizarmit 1 · 0⤊ 0⤋