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Discuss Need good subprime lenders in the Vehicle Sales and Marketing forum at Car Dealer Forums; I've been getting lots of traffic through my marketing efforts. However, I don't have any ...
  1. #1
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    Default Need good subprime lenders

    I've been getting lots of traffic through my marketing efforts. However, I don't have any lenders that will do 100% loans for people with less than a 600 score. Please help!!


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  2. #2
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    We have good luck with Security Auto Loans...763-559-5892. They finance about anyone, but do require as little as $500.00 down. They won't finance over about 7000.00. Seem to be great people.
    Terri

  3. #3
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    The topic is complicated. Any attempted to pas a law to protect consumers typically hurts other consumers.

    1. Do we want the lenders deciding if you can can afford the loan or do we want the lender to present the facts and let the borrower decide?

    Subprime standards were lowered so more people with credit problems could buy a home. Maybe it would have been better if we stopped such people from buying. To protect them from themselves.

    2. A lender who then sells on the loan has to meet specific standards when they sell the loan. If it goes into default early of the loan package is not complete then the loan comes back to the lender.

    If the buyers of the loans want better quality they will change what they offer for the better quality loans or they will stop buying the lower quality loans. When the buyers are mostly investment banks I am pretty sure they can figure out if they need to change their standards. They do not need regulations to protect them.

    3. Proof that a loan is sound is based on averages. There is little you can do to prove that a specific borrower will not default. People with good credit scores do have problems from a divorce, law suits, etc that can impact if they will default on a loan.

    In this case people with poor credit were allowed to buy wtih little documentation and no down payment. These are high risk. At the same time the majority of the loans are not in default. The problem is the models for how many would go into default have been proven wrong in that more are defaulting than was expected. Not all the loans; just more than was expected.

    All lenders or investors work from the idea of acceptable losses. If you buy a package of loans you normally are buying a mixed bag and expect some will perform while others will have problems. If you buy a package of loans that have little risk of default normally you are buying a slice of many loans with someone else buying the higher risk element. If there is a default the other buyer gets hit first.

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