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If the borrower defaults on the loan, the lender assumes ownership of the property. In some cases borrowers will walk away from a mortgage personal loans for bankrupts australia the loan exceeds the value of the house. During the mortgage crash, hundreds of thousands of people walked away from mortgages when the market crashed and housing values plummeted.
What is a line of credit. A line of credit is basically the maximum amount of credit a bank or loan institution will extend to a borrower. If you have a 10,000 line of credit and you have already borrowed or still owe a balance of 5000, you are still eligible to borrow the remaining balance until you have reached your credit maximum (in this scenario - 10,000). You do not have to keep applying for a new loan, they will simply give you access to the maximum allowed on a continuing basis.
How is loan eligibility determined.
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