Loans have a legally defined right of return. Many vendors extend this period voluntarily because they want to present themselves as particularly fair with their prospective customers. By this circumstance you can create free bridging loan. Friends of mine did this and so much money exploiting the free return policy.. They wanted to sell their old apartment. This had a value of about 65 thousand.
They wanted a new apartment for sale for 120 thousand. Since they had no money for the old apartment, they would have to absorb 120 thousand loans to pay for the new apartment. Dear, it would have been them take out a loan of just 65 thousand and to pay the rest with the sales proceeds of the old apartment. The bank has offered them for the bridging period a solution, but this was not particularly cheap.
Therefore they have decided to turn the tables and for once to be the one that ripped off the bench – not vice versa, as it is running otherwise. They went into a provider of consumer credit, have taken out a loan of 65 thousand to a very high interest rate. Why did they do that? They did it because these providers had just advertised to extend the right of return. They had to get three months instead of 5 weeks, which otherwise granted by the Bank so they had three months for sale – what actually worked.
Once the money had arrived from the buyer, they immediately refunded the consumer-credit. Through the free right of return it cost this action a cent. Instead, they have used a bunch of free money from the bank itself, and thus procured valuable time to sell their old property. All they need the bottom line for the apartment purchase, was the long-term real estate loan of 70 thousand dollars from their local bank.
Unfortunately, the right of return is not always designed so generously – mostly just 4 weeks and not as in the special case of above 3 months. Shortly before the deadline, you can go to another bank and let there be an offer. This one replaces the old loan and the deadline for the right of return begins again.
When it comes to online raising money or loans you have to be careful in order to avoid various misinterpretations and misunderstandings. This is very important for you and for your loan. These loans were pretty much high but when it comes to repaying it doesn’t matter whether it is high or not because the bank is taking its money from you.
One of the greatest things when it comes to loans is that they are always available but the banks are making a very large profit out of it and if you do not know how to behave in certain situation you will be broke, literally. Think of your actions before you take any loans and everything will be all right.