What Is a Recourse Loan?
According to the Internal Revenue Service (IRS), all debts (and thus all loans) can be divided into two types: recourse and non-recourse. A recourse loan means that the borrower is personally liable for the debt, even after the lender takes whatever collateral was put up against the loan. For example, let’s suppose that you took out a recourse home loan from your bank. After you default on loan payments, the bank could take your home (which usually serves as the collateral for a home loan). However, if the home’s value does not fully cover the total amount you owe in repayment, the bank could pursue further money from you. They could take some of your paycheck, take cash out of your accounts, etc.
A non-recourse loan, such as the kind used by Silver Dollar Financial to provide injured people with pre-settlement funding, is much safer than a recourse loan. With a non-recourse loan, the bank could only take the collateral associated with the loan. Though the loss of your house could be devastating, the bank would be unable to do anything more even if the value of the home did not cover your owed payment amount.
As shown by the Washington and Lee Law Review, non-recourse loans are preferred in real estate due to their limits on the scope of the borrower’s personal liability. Silver Dollar Financial uses this form of a loan instead of recourse loans since they offer more protection.
Ways That a Non-Recourse Loan Can Help You
A non-recourse loan from Silver Dollar Financial is designed to help you through the settlement negotiation phase before your personal injury claim resolves. It does this in a variety of ways, including those listed below.
Counteracting Insurance Company Tactics
Insurance companies have one goal in personal injury claim negotiations, and it’s not to provide you with justice. Their goal is to pay as little as possible; otherwise, their business would collapse. Unfortunately, that means they often resort to stall tactics in settlement negotiations, hoping to pressure you to accept a low-ball offer as your expenses mount up.
Not only is this a perversion of the concept of compensation in a personal injury claim, but the sad reality is that it is often effective. By getting a pre-settlement loan from Silver Dollar Financial, you can cover your expenses in the here and now, taking the claws out of the insurance company’s tactics.
Giving You Financial Security
A pre-settlement loan from Silver Dollar Financial gives you up to $100,000 to do with as you please. You might suffer a host of damages in the accident that led to your personal injury claim, and the price tag for those expenses can be very high. Some common forms of damage include:
- Medical expenses
- Lost wages
- Property repair/replacement (such as a car after a car accident)
- The purchase of necessary medical equipment for your home
- Your pain and suffering, including mental effects of your injury
Even if these expenses do not have to be paid until after your settlement, you might need income to pay for everyday costs like groceries, rent, mortgage, school tuition, and more. Pre-settlement funding alleviates this pressure by giving you the money you need to handle any expenses that crop up while you wait for your rightful compensation.
Assuaging Your Fears
Some folks may be reticent to take out a loan, fearing high-interest payments or remembering some recourse loan nightmare in their past. Since Silver Dollar Financial provides non-recourse loans, you can rest assured that you will not be held personally liable for the debt if you default on payments.
But what happens if you wind up losing your personal injury claim and do not get a settlement or jury award? You might decide not to take out a pre-settlement loan for fear of having to pay back the loan when you get nothing in your case. However, Silver Dollar Financial has an answer for that as well.
If you lose your personal injury claim, you do not have to pay us back!
Start the Non-Recourse Pre-Settlement Loan Process Today
Your injury has negatively impacted your financial situation already. Don’t let the underhanded stall tactics of greedy insurance companies keep you from the compensation you truly deserve. All you have to do to start the process of getting a non-recourse pre-settlement loan is input relevant information on our Apply Now page.
While we may request additional information before making our decision, you can be approved for a loan in as little as 24 hours! Get up to $100,000 in your bank account and take control of your personal injury claim with a non-recourse loan from Silver Dollar Financial today.