The security
Your homesupports this loan.
This is the part most lenders bury. We have given it its own page, in the same words we use inside the application, because you should be able to explain it to someone else tomorrow.
When you sign a Lendio loan you give us consent to register a claim against your property if the loan defaults. That consent is the security. It is why we can lend on your home and your cash flow instead of a credit score.
Nothing is registered today. Nothing is registered while the loan is being paid. Your title stays untouched for as long as the loan performs.
While you are paying
Nothing is on your title.
No registration, no charge, no filing. If you looked up your property today you would see your mortgage and nothing from us. This is true for the whole 24 months if the loan performs.
If you fall behind
We call you before we do anything else.
A missed payment starts a conversation, not a process. We would far rather rearrange the payments than chase you, and hardship options come before any other step.
If the loan defaults
A claim can be registered, behind your mortgage.
Lendio obtains judgment and can then register the claim against your title. It ranks behind your first mortgage and any existing secured credit — it does not jump the queue, and it does not touch your mortgage.
Once the loan is repaid
There is nothing to discharge.
Because nothing was registered, nothing has to be removed. No discharge fee, no paperwork, no waiting on a registry. The loan simply ends.
Why we do it this way.
A loan against your home is not a loan people let slide. That is the entire point, and we would rather say so than pretend otherwise.
It is not a recovery tool. Enforcing on a balance this size would be slow and expensive, and the money would arrive whenever the property next changed hands — possibly years away. No part of how Lendio makes money depends on it.
What it does is let us price a loan on ownership and cash flow rather than a credit score, and lend to people a bureau file would turn away. The security is what makes the rest of the product possible.
You will see this again before you sign.
It gets its own screen inside the application — step 7 of 8 — with its own acknowledgement, separate from everything else you agree to. It is not a clause inside a longer document, and there is nothing to scroll past.
Step 7 of 8
Understand the security.
This loan is supported by your home. Nothing is registered against your property today, and nothing will be while the loan is being paid. If the loan defaults, Lendio can register a claim that sits behind your mortgage.
I have read this and I understand that my home supports this loan.
Straight answers.
If something here is unclear, stop and ask us before you sign. We would rather answer it now.
Not while the loan is being paid. Nothing is registered at funding and nothing is registered during the term. A claim can only be registered if the loan defaults and Lendio obtains judgment.
No. There is no appraisal, nothing touches your existing mortgage, and any claim we could register would rank behind it.
Missing payments to the point where the loan cannot be brought back on track. It is not a single missed payment, and it is never the first thing we do — we contact you and look at hardship options first.
No. We register nothing unless the loan defaults, and what could be registered then is a claim that ranks behind your mortgage, not a new mortgage.
You need to own it. We qualify you on ownership and the cash flow we can see, not on an equity calculation, which is why there is no appraisal.
If the loan is performing, nothing — there is nothing registered to settle. If a claim had been registered after a default, it would be settled out of the sale or the refinance.
Yes, any time, for free. The loan ends, and because nothing was registered there is nothing to discharge.