Interest rates on settlement loans
On non-recourse loans, loans where the loaner is not repaid if the case is lost, interest rates can be very high, coupled with very high fees. Some lenders wont charge interest if they consider your case to be risk-free. However, they do charge a risk-free fee, the price being determined based on the specific case. If your case is approved for any kind of settlement loan how much will be owed is stated in the contract, so be sure to read it thoroughly.
The length of time needed to obtain a loan settlement
The time it takes to receive a loan settlement depends primarily on your attorney. The broker will request documents from your attorney, and will need to speak to your attorney as soon as possible. You’ll receive your settlement loan the day the broker receives all the needed information, and speaks with your attorney. You should speak with your attorney and let him know you’re pursuing a settlement loan to expedite the process.
What is required to obtain a specific loan
Well first of all, no up-front fees will be required by any lender. You have the option of choosing whether you’d like the money in the form of a check, or as a direct wire transfer to your bank account. Keep in mind having the money wired to your account will come with a small fee. Also, you will not be required to submit your date of birth, or your social security number. You must however provide it after your loan is approved.
Time is very important in most cases, as you already know. Most good brokers will call the law-firm you’re working with to confirm that the law-firm has received their request for documents. Oftentimes you will have a secretary or paralegal submit the paperwork for you, and very rarely will your attorney do it.
If the broker does not receive the requested documents within 1-2 day, they will usually follow-up with a reminder, and request the documents again. If your attorney for some reason does not cooperate with the broker your assistance in obtaining the requested documents. It’s suggested you obtain a new attorney if your current one if being uncooperative. Remember, you want to get your loan today, not in a few months.