We Help People Buy Homes and Other Real Estate
a California Corporation
|Application for Guarantee||Loan Guarantee|
|Consulting Services||Contact Us|
WeGuaranteeLoans.com provides written guarantees to real estate lenders so that borrowers can get the money they need when they need it. Our guarantee program reduces the risk to lenders at no cost to them, giving lenders the incentive to approve home loan and other loan applications fast.
The program is simple.
- Upon a loan becoming delinquent more than 60 days, at the request of the lender, we make 4 to 6 monthly payments to the lender depending upon the option selected. This provides the lender with continuing cash flow while it seeks an appropriate remedy.
What Does it Cost the Borrower?
- The cost is $1,000 plus a 100% fully reimbursable payment equal to 4 to 6 months of payments on the guaranteed loan.
How Does it Work?
- The loan applicant obtains a loan approval subject to the condition of our providing a written guarantee to the lender.
- The loan applicant completes our application for a loan guarantee and obtains a written approval confirmation.
- Upon approval of the loan, WeGuaranteeLoans.com issues its guarantee and the applicant then pays the $1,000 fee plus 4 to 6 monthly payments to WeGuaranteeLoans.com.
- Depending on the terms of the agreement, the payment equal to 4 to 6 months is returned at the end of 5, 6, 7, 8, 9, or 10 years without interest.
How We Use the Funds Paid
- The $1,000 fee is used to pay overhead and profit.
- The funds equal to 4 to 6 months of payments are invested by us in safe, marketable investments to earn income for our firm and to be available when required to satisfy the terms of our guarantee contracts.
Who is WeGuaranteeLoans.com?
WeGuaranteeLoans.com is a California Corporation that maintains a minimum of $500,000 of securities that can be converted into cash. The stockholders include the lawfirm of Michael T. Chulak & Associates and attorney Michael Chulak. We are not an insurance company, escrow company, trust company, or financial advisor.
Is it Safe?
The shareholders of WeGuaranteeLoans.com have invested securities worth at least $500,000 into the company which serves as a substantial reserve. The funds received are invested in safe, liquid investments that provide a constant cash flow, and the firm has a back-up line of credit for $100,000 from the lawfirm of Michael T. Chulak & Associates.
Why Do Lenders Like the Program?
The program guarantees up to 6 months of loan payments upon a default by the Borrower which provides cash flow while the lender seeks an appropriate remedy. It effectively reduces their loan to value ratio and the possibility of sustaining a loss. Lenders should love the program because collecting from us is as easy as sending us a form. Many lenders will count the 4 to 6 months payment as required reserves required by their underwriting guidelines. This makes it easier to close loans.
- Joe wants to refinance his property with a $250,000 loan which will give him $50,000 cash out and a lower interest rate.
- Joe's credit score is marginal so the lender is reluctant to make the loan.
- Joe offers the WeGuaranteeLoans.com program which is acceptable to the lender, who approves the loan.
- Principal and interest payments on the $250,000 loan are $1,500 per month.
- Joe pays the $1,000 fee plus $6,000 to WeGuaranteeLoans.com and obtains his loan.
- Joe makes his payments on the loan and receives his $6,000 back after 5 years. He now has excellent credit.
Questions and Answers
|Q.||Do we pay you a fee if we are not approved for a loan?|
|A.||Absolutely not. You are obligated to pay us only when your loan is approved.
|Q.||Why can't a friend or relative cosign for me?|
They can if they are willing to accept the consequences. Most people prefer not to sign loan guarantees or cosign loans
because it will negatively effect their own credit rating and could result in a substantial financial loss if
the borrower defaults on the loan or files for bankruptcy. |
|Q.||What types of loans do you guarantee?|
All types of real estate loans, loans to homeowner associations, and other loans that have a due date of at least 5
years. Contact us with any questions. |
|Q.||In what areas will you guarantee loans?|
|A.||Anywhere in California.|
|Q.||Who are the types of people that use your service?|
People with low FICO scores, young people with little credit history, foreign borrowers, and people with marginal income
to debt ratios.|
|Q.||Can you guarantee FHA loans?|
|A.||No. Unfortunately, the government requires a blood relative or substantial relationship to be a cosigner on FHA loans.
Private Money - Hard moneyLenders and Brokers
Make your loans easier to sell to investors by making them safer. Private money lenders understand the fees earned on each loan sold depend on more than the note rate. When buyers in the secondary loan market perceive a loan to carry a high risk, the required yield increases and the fees to the seller decrease. When buyers in the secondary loan market perceive a loan to be safe, the yield requirement decreases and the fees retained by the seller increase. You can increase the net fees you earn on each loan sold and make them easier to sell by utilizing the service provided by WeGuaranteeLoans.com. Our service costs you nothing since the cost is paid by the borrower.
The Dangers of Co-Signing or Guaranteeing a Loan
Most people like to be helpful especially when it involves friends or relatives and often people are asked to co-sign loan documents or guarantee a loan for another person. The decision to co-sign or guarantee a loan should be considered very carefully because the risk may be very high, and if the borrower defaults, the consequences can be financially catastrophic.
The concept is quite simple. When a bank or other lender decides that a loan applicant is not credit worthy, the lender may suggest that the loan can be made if the applicant is able to convince a credit worthy individual to co-sign the loan documents or guarantee the loan. This means the lender is relying on the co-signer or guarantor, not the original loan applicant. In short, the lender does not have confidence that the original loan applicant can or will repay the loan.
Under federal law, when a person decides to guarantee a loan that a professional lender would not otherwise make, the lender must provide the prospective guarantor with the following notice before the guarantor signs the required guarantee agreement:
You are being asked to guarantee a debt. Think carefully before you do. If the borrower does not pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility.
You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount.
The creditor can collect this debt from you without first trying to collect from the borrower. The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record.
This notice is not the contract that makes you liable for the debt.
While not all guarantee contracts are the same, they are similar and generally make the guarantor fully responsible for the repayment of the loan. Prospective guarantors and co-signers should consider the following:
- If the borrower misses a single payment, the lender may be able to call the entire loan amount due and payable.
- Lenders are not required to attempt to collect delinquent payments from a borrower before they demand payment from a guarantor. Upon a default, the lender will usually go straight to the co-signer or guarantor for payment since he or she is the one with the ability to pay.
- If a payment becomes delinquent, the lender can change late fees, attorneys. fees and costs, and sometimes a penalty interest rate until the loan is fully paid.
- The most common reasons that borrowers default on loans, forcing co-signers or guarantors to pay, include: medical emergencies, loss of employment, economic downturns, natural disasters, unanticipated death due to an accident or other cause, and divorce. Borrowers have limited control over these types of events. When a person co-signs or guarantees a debt, they make the assumption that circumstances will always be good.
- Co-signing a loan will directly affect the co-signer's credit because the loan obligation will appear on his or her credit report. The loan must also be disclosed on the co-signer.s balance sheet. If the borrower makes late payments, the fact will be reported on the co-signer's credit report.
- Guarantors of loans must disclose the guarantee as a contingent liability on all financial statements.
- Co-signing for another person or guaranteeing their loan will always make it more difficult to borrow money or obtain credit.
- In California, all community property is available to creditors for the payment of debts. This means your spouse will be placed at risk if you co-sign or guarantee a loan.
- If a co-signer or guarantor dies and their property is left to a spouse, children, or others, the liability of the co-signed loan or guarantee will directly impact the person or persons inheriting your property.
- Sometimes a written guarantee will make the guarantor a continuing guarantee liable for additional or new loans made by the same lender to the original loan applicant for an indefinite period of time. This means the guarantor.s liability continues even after the original loan has been fully paid.
Before you consider co-signing loan documents or providing a personal guarantee, consider the alternative of suggesting the service provided by WeGuaranteeLoans.com. You will sleep better at night knowing that you and your family are not at risk.