What is escrow and how does is effect impound loans? What is an impound loan? Do you need escrow? The term escrow in this context refers to the money held by a third-party on behalf of two (or more) parties entering a transaction, with predetermined conditions. That’s a lot of information to take apart. Let’s start by going over the definitions and uses of each. With a car title loan with LoanMart, these are not things you have to worry about, but something you should learn if you are looking at different kinds of lenders, while you are shopping for a nontraditional loan.
What is Escrow?
An escrow service is the middle man, so to speak. They are the ones who hold the money and the documents to make sure the parties are fairly treated and reimburse when the time comes to settle the account. They are there so that everyone is treated fairly, and all the terms are followed. For the most part, escrow services are provided by lawyers or banks where there is a mortgage or something that requires payments to be made on one of the conditions.
What are Impound Loans?
An impound loan is a loan where your car is taken or “impounded” so that it is held as collateral. Impound loans can also offer larger monetary dispersants but at the same time, you won’t have access to your vehicle until the loan is payed off. With an impound loan, not having access to your vehicle is a heavy handicap. Most people use their car for
- Groceries
- Work
- Travel
- Education
- And more…
Unless you work from home and have your groceries delivered, most people need access to their cars.
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When you take into consideration the amount of fees and storage, you can lose more in the long run. There’s no assurance that your vehicle will be maintained while your car is impounded. Even in a secured impound lot, you don’t know that the weather will be in your favor. Most impound lots do not offer covered storage and even if your car is brand new, with no rust or body damage, there is no assurance that your vehicle will be sheltered property. Most car title loans, on the other hand will allow you to hold onto your car if your payments are made in a timely manner.
When you’re dealing with a financial crisis, you need to take control of your situation, having in the slightest control can offer the greatest peace of mind.
Who Will Provide Escrow Services on a Car Title Loan?
Car title loans are short enough that there is no need for a lawyer to get involved in an escrow. So they usually close the deal between the buyer and the seller and only in special circumstances require a buyer and seller to use an escrow service to ensure that all of the terms of the sales agreement are met and all liens are payed off. Some things that would involve special circumstances, would be if the title loan involves the sale of a car with a bank lien against the title, then the bank or finance company may act as an escrow agent between the borrower and the seller. These are very specific terms but if you use a nontraditional lender such as a car title loan, you won’t have to worry about these conditions. LoanMart has made the process for getting a car title loan very simple for our customers.
Getting a title loan with LoanMart is simple and only takes 3 easy steps
- You give us a call at 855-422-7412, visit us at any of our participating stores, apply online or use your mobile device to apply with our LoanMart Mobile App
- You can get approved on your title loan in as little as one business day3.
- You will be funded with either a check, money transfer, or cash, for your convenience, with no restrictions
Car Title Loan Advantages Over Impound Loans
Using an impound loan can become very confusing and can make a borrower uncomfortable if they don’t have a clear understanding of what the terms of the loan are. The more understanding there is between the lender and the borrower, the easier you to fulfill the terms of the loan. When you feel that you can understand the terms, then you can confidently accept the terms.
LoanMart wants you to be able to reestablish yourself. When you come to us for your loan needs, we take your information and try to make terms that work with you1. Together, we select repayment terms that will lead to successful repayment. From the length or the loan to the amount, we let you pick your terms.1 LoanMart also has different payment options that allow you to make payments whenever you have time. You can send your payments
- Online
- By Mail
- By calling 855-422-7412
- Using the LoanMart Mobile App
- Or visiting us at a participating store
Getting a title loan with LoanMart is simple. You can give us a call at 855-422-7412, visit us at any of our participating stores, apply online or use your mobile device to apply with LoanMart. When you are ready to apply, then you can begin the application process whenever you are ready and get cash when you need it1.
