Effects of Defaulting on Resale Loan

[von Monster]

Just out of curiosity I took a look at Moneras financing terms - 16.9%!!!! To finance $10k you're looking at ~$25k if you rode the 12 year term to completion!!!!!

I have an unsecured LoC in Canada (keep in mind our rates are higher than the US's) that's less than a third of that rate. And if I had to default I could walk away from the loan AND keep the contract. Something to consider if you need to finance, if you went to a HELOC you could likely get the rate down to a quarter or lower.

I guess I should have expected this level of insanity from a company that named itself after bacteria....

 

[Jimmy Geppetto]

Just out of curiosity I took a look at Moneras financing terms - 16.9%!!!! To finance $10k you're looking at ~$25k if you rode the 12 year term to completion!!!!!

I have an unsecured LoC in Canada (keep in mind our rates are higher than the US's) that's less than a third of that rate. And if I had to default I could walk away from the loan AND keep the contract. Something to consider if you need to finance, if you went to a HELOC you could likely get the rate down to a quarter or lower.

I guess I should have expected this level of insanity from a company that named itself after bacteria....

If you default on the HELOC you can keep the contract just not your house.

 

[mamaofsix]

Just out of curiosity I took a look at Moneras financing terms - 16.9%!!!! To finance $10k you're looking at ~$25k if you rode the 12 year term to completion!!!!!

I have an unsecured LoC in Canada (keep in mind our rates are higher than the US's) that's less than a third of that rate. And if I had to default I could walk away from the loan AND keep the contract. Something to consider if you need to finance, if you went to a HELOC you could likely get the rate down to a quarter or lower.

I guess I should have expected this level of insanity from a company that named itself after bacteria....

I was going to say something similar to the OP. Is there any chance you can get a loan somewhere other than Monera? Such a high interest rate.

To each his own, but our family is in the "just save up to pay in cash" camp. With 16.9% interest rates, it ends up being more expensive to buy than to keep on renting points or just pay cash for the rooms...

 

[mamaofsix]

If you default on the HELOC you can keep the contract just not your hous

If you default on the HELOC you can keep the contract just not your house.

An "unsecured line of credit" as described by the poster you are referencing is not secured by any asset. You would not lose your house or any other asset if you defaulted. I can agree with the poster that, at least in Canada, unsecured lines of credit can be found quite easily for a much lower interest rate than 16.9%

 

[von Monster]

If you default on the HELOC you can keep the contract just not your house.

I was refering to the unsecured LoC; obviously you're taking on more risk if you secure the contract loan with your house. I just gave it as an example of how you could lower the interest rate even further.

 

[DonMacGregor]

Given Monera’s, and the entire World of DVC’s, desire to make money off of every aspect of the resale process, from listing to title recordation (and renting if you go that route), I’m going to guess they don’t let too many pennies hit the floor.

 

[linzjane88]

Given Monera’s, and the entire World of DVC’s, desire to make money off of every aspect of the resale process, from listing to title recordation (and renting if you go that route), I’m going to guess they don’t let too many pennies hit the floor.

How come Lightstream isn't talked about much around here? I used them for the shortest term they offered the lowest interest rate at, I think it was around 5.9, which we paid off in 2-3 years. I guess I tend to lean towards financing when you can get cheap rates which seems like a never event of financing through Monera.

 

[Sandisw]

How come Lightstream isn't talked about much around here? I used them for the shortest term they offered the lowest interest rate at, I think it was around 5.9, which we paid off in 2-3 years. I guess I tend to lean towards financing when you can get cheap rates which seems like a never event of financing through Monera.

I have used them as well for a bridge loan when I was selling one and buying another.

They were pretty good and we were happy!

https://www.lightstream.com/

 

[DonMacGregor]

How come Lightstream isn't talked about much around here? I used them for the shortest term they offered the lowest interest rate at, I think it was around 5.9, which we paid off in 2-3 years. I guess I tend to lean towards financing when you can get cheap rates which seems like a never event of financing through Monera.

Financing is like Fight Club around these parts.