What is a Best Egg Secured Loan?
The Best Egg Secured Loan offers homeowners lower rates and more affordable monthly payments compared to our unsecured loan offers. Like an unsecured loan, your credit history and income are used to determine your offers—but you must also have some equity in your home and provide collateral to secure the loan.
The loan is secured using a lien against fixtures permanently attached to your home, which could include items like built-in cabinets and shelving, bathroom vanities, and light fixtures. It's a unique approach that keeps your home safe as your home is not used as collateral.
While the fixture lien is in place, you may not be able to sell, refinance, or get new financing on your home without paying off the lien, since purchasers and home loan lenders usually require the lien to be satisfied and terminated at or before closing. The lien will be removed after the loan is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
What are fixtures?
Fixtures that are subject to the lien are items that are physically attached to your home and that you wouldn’t take with you if you were to move—things such as built-in cabinets and shelving, bathroom vanities, and light fixtures. They do not include items not secured or attached to your home like TVs, dishwashers, or laundry units, and the house itself is never used as collateral. Since the loan is based on your personal credit, we don’t need to know the value of the fixtures. No appraisals are needed.
What is a lien, and what is it for?
A lien is a right you grant on property you own to secure repayment of an obligation or debt.
What is the lien process?
A lien will be placed against the fixtures of your home by filing or recording a UCC-1 financing statement about a week after your secured loan is issued. If there’s a co-owner of your home, they must provide consent for your secured loan and the lien against the fixtures in your home. With that said, they won’t be personally obligated as a borrower, and we won’t check their credit report. The lien will be released after the loan is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
How can I have the lien on my home's fixtures removed?
The lien on your home’s fixtures will be released when your secured loan is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
The UCC-1 lien will not be subordinated to a subsequent mortgage, deed of trust or other fixture lien.
How do you determine the value of my fixtures?
While the loan is secured by fixtures in your home, the Best Egg Secured Loan is offered based on your personal credit history and whether you’re a homeowner with equity, not on the value of the collateral itself.
What is collateral and how is it used to secure a loan?
Collateral is property a borrower pledges to secure repayment of a loan. The Best Egg Secured Loan uses fixtures as collateral. The collateral does not include personal effects, household goods, or appliances that are not attached to your home.
What is a UCC-1 filing and what does it do?
A UCC-1 filing is a document that gives the public notice of a lien on the home’s fixtures that serve as collateral for the loan. When you receive a Best Egg Secured Loan, a UCC-1 is filed or recorded in the real property records in the county where your home is located.
This lien will appear in title searches of your home, which may impact your ability to sell, refinance, or obtain new financing on your home or fixtures, since purchasers and home loan lenders usually require that the lien be satisfied at or before closing. The UCC-1 filing will be terminated when your loan is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
What happens if I want to sell my home before my secured loan is fully paid off?
Your home may be more difficult to sell if the fixtures are secured by a UCC-1 lien, and potential purchasers and home loan lenders may require that the lien be satisfied and terminated at or before the sale or loan closing.
If you sell your home, you’ll be required to pay off your loan in full.
Looking to sell or refinance your home with an active secured loan? Learn more here.
Is a secured loan only in my name?
Yes, a secured loan is only in the name of the borrower who signs the loan agreement.
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 won’t be considered borrowers, and they won’t 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 loan is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of ten days.
When is the lien filed?
A lien will be placed against the fixtures of your home about a week after your Best Egg Secured Loan is issued. If you obtain a second secured loan while you still have a balance owing on your first secured loan, so that you have two open secured loans, in many cases a second UCC-1 lien does not have to be filed and the second loan can also be covered by the existing UCC-1 lien.
What happens when my secured loan is paid in full?
The lien on the fixtures in your home ends, and we will terminate the UCC-1 filing, once all Best Egg Secured Loans in your name have been paid in full. Once that’s done, we’ll also report the loan to the credit bureaus as paid.
We’ll file or record a termination of the lien with your county after your is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
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/credit balance on your loan account after payoff will be sent back to you.
What happens if something in my home breaks, is replaced, or another lender repossesses it?
No matter what changes are made to your fixtures or home, and regardless of the condition of the individual fixtures listed as collateral on the UCC-1 filing, that will not affect the lien on your home’s fixtures, and we will not terminate the lien until your loan is paid in full. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
What happens if my home goes into foreclosure?
If you have a mortgage or a home equity loan on your home and fall behind on payments, your lender may start foreclosure proceedings to sell your home. We may participate in the mortgage lender’s foreclosure process to collect the unpaid balance of your secured loan from any available foreclosure proceeds. If this process does not fully satisfy your secured loan payment obligations, we may declare your loan in default, and your unpaid balance may become immediately due and payable.
What is the difference between Best Egg’s secured and unsecured personal loans?
Both our unsecured and secured personal loans are offered based on your personal credit history, but a secured loan requires collateral consisting of fixtures attached to your home.
Fixtures that are subject to the lien are items that are physically attached to your home and that you wouldn’t take with you if you were to move—things such as built-in cabinets and shelving, bathroom vanities, and light fixtures. They do not include items not secured or attached to your home like TVs, dishwashers, or laundry units, and the house itself is never used as collateral.
How do I identify if I have a secured loan offer vs. an unsecured loan offer?
Specific loan offers and terms are presented on the website when you’re applying for a loan. If you qualify for a secured loan, you’ll have the option to select a secured offer or choose the original unsecured offer provided to you.
You can also identify a secured loan was selected by checking your Loan Agreement for a paragraph titled “Security Interest.”
What’s the difference between Best Egg’s secured loan and a home equity loan?
While home equity loans use your entire home as collateral, the Best Egg Secured Loan only uses the fixtures in your home—items like built-in cabinets, light fixtures, and vanities. This helps avoid the risk of foreclosure associated with home equity loans and allows you to access our lowest rates and fast funding. The application process is hassle-free, with no appraisals, receipts, or extensive paperwork required.
About half of our customers get their money the next day. After successful verification, your money can be deposited in your bank account within 1-3 business days.*
What if I don’t have equity in my home?
The Best Egg Secured Loan is only available to homeowners with equity. If you don’t have equity in your home, you can still check your rate for an unsecured personal loan.
My home is under a contract for sale, and I won’t receive enough money from the sales proceeds to repay my secured loan. Now what?
If your home 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 paid off when your home is sold, the lien on your home's fixtures will remain in place after the sale. As a result, you may have difficulty selling your home if your loan is not fully paid off prior to or at the sale closing. The lien removal process begins when the final payment is received and the full loan has been paid off a minimum of 10 days.
What if I want to refinance my home?
Most mortgage lenders require that all liens be removed before refinancing your home. We will only remove the UCC-1 lien on your home’s fixtures upon repayment your secured loan in full. Once your final payment has been made and your loan paid off a minimum of ten days, we’ll begin the lien termination process.
Looking to sell or refinance your home with an active secured loan? Learn more here.
How will a secured loan impact my ability to borrow more money against my home?
Potential mortgage lenders will be able to see the active UCC-1 lien on your home’s title report and an open secured loan account on your credit report, and they usually require that any UCC-1 liens be satisfied, either from the mortgage proceeds (if they are sufficient) or separately and terminated.
What happens if I need to obtain new financing to purchase new fixtures?
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 or the UCC-1 lien, including your payment obligations.
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 effects, household goods, or appliances that are not permanently attached to your home.
How do I retrieve a payoff quote for my secured loan account?
You can access a 30-day payoff quote anytime in your Best Egg account. From the 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. You can also print a copy of your quote for your records.
Find more options for requesting your payoff quote here.
What address do I send payments to?
If you want to mail your loan 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.
Best Egg
PO Box 207865
Dallas, TX 75320-7865
If you’d 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:
Best Egg
2975 Regent Blvd Ste 100
Irving, TX 75063
We are not responsible for checks or other payments that may become lost, destroyed, misdirected or delayed by the mail.
Enrolling in auto pay is a simple way make 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 payment option.
Please keep in mind that returned payments may result in the cancellation of your enrollment in automatic payments.
Can a 3rd party mortgage/title company request documentation on my behalf?
We require any third party, no matter the relation to you, to give us a written, signed authorization from you before we will release any personal financial documentation about you or your loan. If a payoff quote is being requested, you can always download it directly from your Best Egg account.
Do you provide subordination agreements?
No, we don’t agree to subordinate our UCC-1 lien to a subsequent mortgage or other lien. The loan must be paid in full for us to terminate the lien. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
Do you temporarily terminate the UCC-1 filing?
No, we don’t temporarily terminate the UCC-1 filing to allow you to get a new mortgage or other lien on your home, and then refile it afterwards. The secured loan must be paid in full for us to terminate the UCC-1 lien. The lien removal process begins when the final payment is received and the loan has been paid off a minimum of 10 days.
Why can’t I access my online account?
If your loan was just approved and you’re having trouble accessing your Best Egg account, please wait up to 3 business days for your loan to be funded. Your online account will be accessible once you receive your loan.