If you’re wondering whether you are required to repay a non-recourse loan, the answer to that question is, yes and no. It might help to first understand the difference between a recourse loan and a non-recourse loan.
Most people are familiar with a recourse loan, even if they don’t know what it is at first. With a recourse loan, the lender gives you a secured loan. That loan is secured by collateral, and the lender is able to go after you financially if you stop making payments.
Most car loans are recourse loans. In the event that you stop making monthly payments, the lender can repossess your car and resell it. If the amount they sell it for is less than what you still owe on the loan, the lender can go after your other assets or ask the court to garnish your wages.
With a non-recourse loan, on the other hand, if you default on the loan the lender has no legal recourse. If, after selling the collateral, there is still a balance due left on the loan, the lender has to take the loss. They cannot go after your other assets.
An example of a recourse loan is a home mortgage. If you default on the loan, the lender can foreclose on your home and resell it. But in most situations, the lender cannot go after your other assets if what they were able to sell the house for was less than the remaining loan amount.
Legal Funding Is a Type of Non-Recourse Loan
Pre-settlement legal funding from High Rise Financial is a type of non-recourse loan. The collateral on the loan in this case is your eventual settlement or jury award. Legal funding is not tied to your debt-to-income ratio or your current employment status. It is tied to your personal injury case.
Because of this, you don’t have to worry about a credit check or providing us with a lot of financial information. To be eligible for a non-recourse loan from High Rise Financial, you simply have to be currently pursuing a personal injury case and have a lawyer representing you.
Based on the specifics of your case and your expected settlement, we will make you a written offer. Once you agree to the terms, you and your lawyer can sign the document.
We typically can have the funds transferred to your account within 24-48 hours after you sign the agreement. Once you have the funds, they are yours to spend as you see fit.
Sound good? Fill out the form on our Apply Now page to get started.
For a free legal consultation, call (877) 735-0016
How You Pay Us Back
The terms will be spelled out in the legal funding agreement, but in a nutshell, you agree to pay us back when you get your settlement or jury award. You pay back the full amount of cash you received, as well as a flat fee that we charge for our services.
When your case resolves, the other party will send your lawyer a check. Then your lawyer pays us back directly from those funds. They will also deduct their own legal fees. The remaining amount is yours.
At no time ever do you need to worry about making monthly payments.
If You Lose Your Case
We understand that not everyone wins a personal injury case. This can happen for a variety of reasons. Whatever the reason may be, if you lose your case and don’t receive a settlement or jury award, you are not required to repay the non-recourse loan.
This is what we mean when we say you may not be required to repay a non-recourse loan. Pre-settlement legal funding is a type of non-recourse loan where your predicted settlement was essentially the collateral for the loan. So, if you lose, there is no money there for you to pay us with—and that’s okay!
In addition, we cannot pursue you legally to force you to sell your home or get a court to garnish your wages. That’s the risk we take when we offer you your legal funding.
Apply Now for Non-Recourse Legal Funding
If you’re having trouble making ends meet while you wait for your personal injury case to resolve, a non-recourse loan in the form of pre-settlement legal funding can help. Just fill out the form on the Apply Now page to get started. The team at High Rise Financial will be in touch with you and your lawyer quickly.
If you have questions or need help, please call our office at (866) 407-6404.