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Advice needed Getting a Bank Loan

I am runnig into some financial problems and need some advice.

When I first came to Armenia, I bought our home for $95,000 cash. There is no mortgage and no other liens or anything else against me with this bank or any other.

In the US I had some problems making ends meet once and I was able to get an Equity loan from my home equity from the bank. Does Colombia have anything available like an Equity Loan or Personal Loan that you can use you home as collateral or something similar?

If there is such a vedhicle are there any problems with getting such a loan. I am not a big risk taker and fairly conservative in many ways so this whole thing has me bothered a bit.

Your thoughts please?

Thanks in advance.

By Rikito on Jul 28, 2009, 05:11 in Friendly Talkzone.

RealEstateCOL says on Jul 28, 2009, 06:59:

Since you own property in Colombia and surely have your Cedula de Extranjeria, you can apply for an "Hipoteca"at a local bank, that´s an equity loan. In this case the lender becomes co-owner or wholly owner of the property until you pay back your loan. Now, whether they give it to you or not is another story.

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Rikito says on Jul 28, 2009, 07:33:

thanks...do you know of any pitfalls i need to be aware of? Ever hear of a reverse mortage in Colombia?

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Bill Turley (Moderator) (Trustee board) (☼Travelguide writer) says on Jul 28, 2009, 07:34:

I would look for other options, a personal loan rather than a mortgage type loan. There have been a lot of problems with these loans over the last few years. List the house as an asset, yes but don't entail it.

Mr. Bill Somondoco

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Rikito says on Jul 28, 2009, 07:38:

Bill, tell me more. What kind of problems and what other options would you suggest? If I want a loan I have to have some kind of collateral right? I can't use my bike or golf clubs.

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Rikito says on Jul 28, 2009, 07:55:

I will be 65 on June 20 next year. Looking for $2,000-5,000 loan amount

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Rikito says on Jul 28, 2009, 08:15:

Brians...what kind of loan and how much do you think on the rate?

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stephen_aubrey says on Jul 28, 2009, 08:15:

Why not go through a bank in the US ? I have access to a line of unsecured credit in my home country for $50,000 I set this all up before I moved here because I knew the interest rates are crazy here.

" Most people talk a lot, few are up for the moment"

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Rikito says on Jul 28, 2009, 08:17:

Ok sounds good but my home is not in the U.S....it is here in Armenia, Colombia I have a Citibank account here in Colombia thought. I have no desire to pay $400-$700 to go to the U.S.

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stephen_aubrey says on Jul 28, 2009, 08:34:

My home is in Bogota (bank account here as well)but I still have one bank account where I am from and a line of credit I can access ,I did not realize you severed all ties completely.

" Most people talk a lot, few are up for the moment"

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Bill Turley (Moderator) (Trustee board) (☼Travelguide writer) says on Jul 28, 2009, 08:42:

I used my history with the bank and the letter notifiing me of my SSA pension to get an unsecured personal loan of $15,000 for 5 years.

Mr. Bill Somondoco

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pedro (☼Travelguide writer) says on Jul 28, 2009, 08:45:

It will be considered a "prestamo de libre inversion" (personal loan) unless you use it buy more assets.

Anywhere from 2.15% per month and below is what you can expect to pay (yes, I was quoted 2.15% per month by a regular bank, not a loan shark).

It's probably not worth taking such a small loan, secured. Just to mortgage your property will cost almost 1 million in stamp duty, notary fees etc.

Suggest you source the loan from the US. Just get a credit card or some simple unsecured facility.

"this may seem a strange post but it is not...when in colombia men need to be aware that colombia women may try to be seductive and entice a travelling gringo to have sex with them..to be forewarned is to be forearmed..." -- pow wow

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cvivaspoorbuthappy says on Jul 28, 2009, 10:58:

I would not get a home equity loan in Colombia. Interest rates are very high in Colombia, even with the house as collateral you would get an interest rate of 15-22% with a bank and 20-30% with an independent loan company.

Depends on the amount of the loan as well. I would try to do something in the US before doing anything in Colombia

CV

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Rikito says on Jul 28, 2009, 11:24:

cvivaspoorbuthappy , I think you and the rest of the PBHres are correct. Anyway thanks for your hep.

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durito2 says on Jul 28, 2009, 14:40:

assuming decent credit in the usa you should be able to get a credit card balance transfer with 0-2% interest for a year or two. they'll send you a check, you deposit in your bank

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vicshere says on Jul 29, 2009, 05:16:

rikito i suggest you get yourself a low interest credit card they have annual fees of $100-200 but the annual interest rate is like 5 8% then use your card here and Colombia and do cash advances for what you need ..the banks suck and the need you house, a work permanent work record or in your case a pension certificate which they don't recognize from the states

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