- What is the difference between Best Egg’s secured and unsecured personal loans?
Both our unsecured personal loans and secured loans are offered based on your personal credit history, but a secured loan requires collateral consisting of fixtures attached to your home.
A fixture is any object physically and permanently attached or fastened to your property. This includes items that are bolted, screwed, nailed, glued, or cemented onto the walls, floors, ceilings, or any other part of your home.
- Every state has its own definition of fixtures, but some examples are:
- Built-in cabinets and shelving
- Bathroom vanities
- Light fixtures
- How will this impact my ability to borrow more money against my home?
A lien on the fixtures in your home will be maintained in local property records until the secured loan is repaid. This is often referred to as a “UCC-1 filing.” In addition, your secured loan will also be reflected on your credit report. A future lender will be able to see the lien until it is released and the secured loan until it falls off your credit report, which could affect their decision to lend money to you.
- What’s the difference between Best Egg’s secured loan and a home equity loan?
Both types of loans place a lien on all or part of your home, which means that you may have to repay your loan in full if you sell, refinance, or obtain new financing on your home. A home equity loan uses your entire property (including the fixtures) as collateral, while Best Egg’s secured loan is only secured by the fixtures in your home. Traditional home equity loans may take several weeks and involve multiple in-person appointments, but with a secured loan, you can file all the paperwork online and receive your money in as little as a few days.
- What happens if I need to obtain new financing to purchase new fixtures?
Your secured loan will appear on your credit report, which could affect the willingness of another lender to offer you a loan. With that said, you’re free to make changes to your property as you see fit. Upgrading or replacing fixtures in your home will not affect the terms of your Best Egg secured loan, including your payment obligations.
Please keep in mind, any new fixtures will be automatically subject to the lien we filed in connection with your loan. But remember, the lien does not affect your personal items, household goods, or appliances that are not permanently affixed to your home.
- What is collateral and how is it used to secure a loan?
Collateral is an asset that a borrower pledges to secure a loan. Our secured loan uses fixtures as collateral to support your repayment of the loan. The collateral does not include personal items, household goods, or appliances that are not permanently attached to your home.
- What happens if I want to sell my home before my secured loan is fully repaid?
Your home may be more difficult to sell if the fixtures within it are secured by a lien, and potential purchasers may require that the lien be removed at or before closing the sale.
In addition, we’ll be unable to release the lien on your fixtures until your loan is repaid in full. If you sell your home and its fixtures before fully repaying your loan, it may be declared in default. This means that we would have the right to repossess the fixtures from the new owner.
Your loan would also become immediately due and payable, and any non-payment (or any payments less than the remaining balance) will be reported and appear on your consumer credit reports.
- What if I don’t have equity in my home?
Best Egg’s secured loan is only available to homeowners with equity. If you don’t have equity in your home, you may still be eligible for an unsecured personal loan. Check your rate for an unsecured personal loan today.
- What is a UCC-1 filing and what does it do?
A UCC-1 filing is a document that gives public notice of a lien on the collateral supporting a secured loan. When you receive a Best Egg secured loan, a UCC-1 filing is submitted to the county where your home is located for the lien on the fixtures in your home. This lien will appear in title searches of your home, and may impact your ability to sell, refinance, or obtain new financing on your home or fixtures. The lien and UCC-1 filing will be released when your loan is fully repaid.
- My home is under contract, and I don’t have enough money to repay my secured loan. Now what?
If your property and its fixtures are sold before repayment, including through a foreclosure sale, we may declare your loan in default. Please note, the sale price of your home does not affect the remaining balance on the loan. If your loan is not fully repaid when your home is sold, the lien on your home's fixtures will remain in place after the sale.
This means that we may repossess the fixtures from the purchaser of the home if you:
- fail to make your payment obligations on time
- file personal bankruptcy or insolvency, or
- your home becomes subject to foreclosure under the new owner
As a result, you may have difficulty selling your home if your loan is not fully repaid prior to or at closing.
- How can I have the lien on my home's fixtures removed?
The only way to have the lien on your home’s fixtures removed is to repay your secured loan in full.
- Do I need the signature of my home’s co-owner to get a secured loan?
At least one co-owner, if any are listed on the deed/title of your home, will be required to provide consent for your secured loan. With that said, they will not be considered borrowers, and they will not be responsible for repayment of your loan. Please note that the co-owner(s) may not be able to sell their interest in the home, or refinance or obtain new financing on the home, until your secured loan is repaid.
- What if I want to refinance my home?
Your mortgage lender may require all liens be removed before refinancing your home. The only way to remove your secured loan’s lien is to repay the loan in full.
- What happens if my home goes into foreclosure?
If you have a mortgage or a home equity loan on your home and you fall behind on payments, your lender may start foreclosure proceedings to sell your property. Although we won’t initiate a foreclosure of your home, we will participate in the process to collect the unpaid balance of your secured loan. If this process does not fully satisfy your payment obligations, we may declare your loan in default, and your unpaid balance may become immediately due and payable.
- How do you determine the value of my fixtures?
Our secured loan is offered based on your personal credit history and whether you’re a homeowner with equity. While the loan is secured by fixtures in your home, it does not depend on the value of those fixtures.
- What happens to my home if I miss a payment?
We charge a $15 fee if your bank account has insufficient funds to complete your payment. Because the collateral for your secured loan is the fixtures in your home, not your home itself, we can’t foreclose on your home due to late payments.
- What happens if something in my home breaks, is replaced, or another lender repossesses it?
No matter what changes are made to your property, and regardless of the condition of the individual items listed as collateral, the lien on your home’s fixtures will remain until the loan is repaid.
- Can Best Egg repossess the fixtures in my home that serve as collateral for my secured loan?
Yes. The lien placed on fixtures in your home gives us the right to repossess if you:
- default on your loan or don’t fulfill your payment obligations
- file personal bankruptcy or other insolvency proceedings, or
- your home enters foreclosure proceedings
We may also exercise our right to repossess against a future owner of your home if you sell your home without fully repaying your secured loan. Future holders of your loan will also have the right to repossess if you default.
- Will Best Egg ever sell my secured loan, and what would that mean?
If you fail to meet your payment obligations, we may sell your secured loan to a third party and/or a collection agency. All third parties will be required to comply with the terms and have the rights set forth in your Loan Agreement. This includes the right to repossess the fixtures that serve as collateral for your secured loan under the conditions described in the Loan Agreement.
- What is a lien, and what is it for?
A lien is a right you grant on something you own to secure an obligation or debt. The lien gives a lender the right to take possession of and sell the collateral securing the loan (under certain circumstances) to repay a debt.
- What is the lien process?
A lien will be placed against the fixtures of your home 7+ days from when your secured loan has been issued, and will remain in place until it’s repaid in full.
If there’s a co-owner of your home, they must provide consent for your secured loan, including the lien against the fixtures in your home. They will not be obligated as a borrower and we will not check their credit report.
The lien will be released once all open secured accounts have been paid in full.
- When is the lien filed?
The request to place the lien on the fixtures of your home is submitted 7+ days after the loan has been established.
Please note that if you have a 2nd current open secured loan with us and a lien is currently on file, we will not place a second lien.
- What happens when my account is paid in full?
The lien is removed once all secured accounts in your name have been paid in full for 10+ days and there isn’t an open secured account on file. We’ll then provide this information to the credit bureaus and submit the request for the lien to be removed.
After that, we’ll submit the request to your county to begin the lien removal process 10 days after the account has been paid in full. It’s then up to the county and their timeframe to process the lien termination. Once they process the lien termination request, the lien on the fixtures of your home will be released.
If applicable, any overpayments/credits on your account will be sent back to you via a credit balance refund to the account we have on file.
- Do you honor subordination?
No, we don’t honor subordination. The loan must be paid in full to release the lien.
- Do you honor temporary termination?
No, we don’t honor temporary termination. The loan must be paid in full to release the lien.
- How can we link the lienholder of CRB/Marlette to Best Egg?
Cross River Bank is one of the banks Marlette Funding partners with to issue Best Egg Loans. Please visit our website at www.bestegg.com to learn more about the association between Marlette Funding and Best Egg.
The Loan Agreement also states the association with Cross River Bank.
- How do I retrieve a payoff quote for my secured loan account?
You can access a 30-day payoff quote anytime via your online account.
Begin by logging into your Best Egg account. From the Personal Loan dashboard, click on “Payments,” then select “Loan payoff quote” on the dropdown. You’ll then be able to select your payoff date and view your payoff quote. If you’d like, you can even print a copy of your quote for your records.
- Is a secured loan only in my name?
- What address do I send payments to?
Enrolling in auto pay is a simple way to ensure we receive your payment on time, every time. Call us at 855-282-6353 or log in to your Best Egg account to enroll in auto pay, our easiest monthly payment option.
But, if you’d prefer to mail your payment, we accept checks, cashier’s checks, and money orders. Please place your account number on your check and allow 7-10 business days for your payment to reach us.
PO Box 207865
Dallas, TX 75320-7865
If you would like your payment to be received by the next day, you can pay to have it overnighted. Please be advised that certified mail or mail with a signature requested cannot be submitted as an overnight payment. Send your overnight check, cashier’s check, or money order with your account number written in the memo line to:
2975 Regent Blvd Ste 100
Irving, TX 75063
**Please keep in mind that returned payments may result in the cancellation of your enrollment in automatic payments.
- How do I identify if I have a secured loan offer vs. an unsecured loan offer?
Loan offers and terms are presented on the website when you’re applying for a loan. If you qualify for a secured loan, an offer with terms will be presented. You can select this offer or choose the original unsecured offer provided to you.
You can also identify that a secured loan was selected within the Loan Agreement under “Security Interest.”
- Can a 3rd party mortgage/title company request documentation on my behalf?
A third party, no matter the relation, can’t request documentation on your behalf without written, signed authorization.
If a payoff quote is being requested, you can download one via the self-service tool in your Best Egg account.
- Why can’t I access my online account?
If your loan has just been approved and you’re having trouble accessing your account, please allow up to 3 business days for your loan to be funded. Once your loan is funded, your online account will be accessible.