(Newswire.net — June 10, 2020) —
There are certain situations where people want to take out a loan. These include buying a car, buying a home, and even going to college. One of the most often overlooked situations, where someone might want to take out a loan, is called a lawsuit loan. For those who might not have heard about this type of loan before, there are a few points to keep in mind.
First, a lawsuit loan is also called a pre-settlement loan. This is an advance that is given to the borrower against a future award or settlement. Often, this type of loan is taken out in the middle of a lawsuit that has a good chance of succeeding. Of course, the biggest risk is taking out a loan and then losing the lawsuit. This leaves someone with a large loan and no money coming in from a settlement or verdict. The most common situation where a lawsuit loan is used is with regard to personal injury lawsuits. Often, these lawsuits are more predictable. Some of the most common injuries that might result in a personal injury lawsuit include brain injuries, broken bones, and spinal cord injuries. Some of these lawsuits have the potential to be quite substantial, topping six figures, giving someone plenty of potential equity against which to borrow. Of course, the caveat is that the lawsuit needs to win.
For those who are interested in filing an application for a lawsuit loan, they need to file an application with a reputable lending company. First, the lending company is going to take a look at someone’s case to see how much they might win in the event of a settlement. Then, the lending company will make someone an offer. This is usually a lump sum of money. Then, when the settlement goes through, that person has to pay back the loan with interest. There is usually a funding fee that goes along with the loan as well. The loan has to be paid back from the proceeds of any settlement or verdict.
It is important for people to note that these loans are structured differently than traditional loans. A mortgage is paid back over a period of 30 years. A car loan is often paid back over the course of five years. With a lawsuit loan, this type of debt is usually expected to be paid back immediately, once the settlement or verdict goes through. In essence, this is a short-term loan but it has the potential to be quite substantial. The proceeds from a lawsuit loan can be used to cover the cost of medical bills, property damage, and more. This is why a lawsuit loan is a great option for those in need.