Applying for a loan while living abroad

Look,
if you browse any finance forum, you'll find endless horror stories from people who tried going through shady middlemen or even lawyers (check out sites like Nolo). It’s just a bunch of sad tales about folks who were way too optimistic and naive..

Sasha, you aren't making any sense and I have zero interest in asking you anything, and I hope nobody else desperate falls for this either...
Just walk straight into a bank. If they turn you down, trust me, there's a damn good reason for it...
Obviously, banks exist to lend money because they still make a killing off interest—basically sucking the life out of regular people. Any other setup is only worth it if you have heavy-hitting lawyers in your corner—which you'll definitely need once it becomes clear someone is playing you for a fool. Otherwise, I wouldn't want to be in your shoes. (Sorry for repeating stuff from older threads...)

Better to rent than to be a slave!

Jonathan Ward59 said:That previous post was actually talking about that new law that kicked in on 01.01.
If you actually have to transfer wages
I handled it—used an intermediary, traded some real estate, and ended up with the cash
I didn't have to move my paycheck anywhere at all

Listen closely, everyone😈HERE IS THE LATEST INTEL DIRECT FROM JP MORGAN: you aren't just going to walk in and grab a loan out there, because we're stuck with a corrupt former President, we have citizens drowning in debt, and now, most likely, they’re going to start looking at credit scores—meaning, they will be demanding official credit reports for all American citizens. Furthermore, they want original pay stubs; you might not need a specific credit rating, but banks aren't stupid, they'll jump online to check if the company you claim to work for even exists in the registry. Third, if they feel like it, they have staff who speak perfect English who will literally call your employer to verify your employment status... things like that weren't done until last year, but since there was a massive surge in mortgage holders who are now conveniently failing to pay back their banks, big institutions like Chase have basically said: fine, for the foreseeable future, we aren't going to finance America or its people, especially when they're only recovering about 10 percent of their total placements in the American market. Well, that's just what I heard firsthand... and as for transferring income or dealing with those administrative safeguards, they don't bother with them abroad because they assume the mortgage backed by pay stubs is enough, so if anyone wants to gamble with their roof over their head, be my guest, but... everything has shifted because Americans only pay what they are forced to pay via garnishments or legal seizures... so don't get too excited, because we AMERICANS don't exactly have a stellar reputation; in fact, we are considered such a high-risk zone that European banks won't even look at us, let alone finance us_!!!!!!

Scott Johnson45 said:A 6% upfront fee is, quite frankly, predatory...
Is that going to the bank or some broker?

If we’re talking about predatory lending, let’s look at some of these local credit unions or small-town banks that don't give a damn about your credit score or your history, but they’ll hit you with a 25% down payment requirement, a 4% loan processing fee, a 7% unemployment insurance premium just in case things go south, plus another 4% for life or risk insurance—which is basically an $800 sinkhole—not to mention the notary fees, so by the time you’re done, you realize they’ve effectively clawed back half the loan before you even see a dime... BUT HEY, AT LEAST THEY DIDN'T CHECK YOUR FICO SCORE OR CREDIT REPORT😕 so you walk out of the branch with just enough cash to cover a tiny debt and a few hundred bucks in utility bills, leaving you maybe enough for a decent meal for the next three months... and oh, I almost forgot to mention they’ll only ever approve you for a third of your take-home pay...🙏

James Cox6 said:It feels a little weird to me—besides the mortgage itself, what else are they going to grab as collateral? Our promissory notes don't hold any weight with them, and they aren't going to go after your entire estate via a writ.
Clearly, the ratio is going to be way more unfavorable for you than what this guy is claiming—it just doesn't make sense.

Our financial tools don't carry much value there because, with our local promissory notes and legal filings, they could theoretically freeze every single one of your accounts. Since our note lacks a solid legal basis with them, the only real collateral left would be the real estate.

Sure, they might give you lower interest rates, but then they'll just hike the required property valuation ratio—banks always look out for themselves first.

So, you just sign away your life on some foreign promissory note and hope for the best... I suppose that's just how the game is played...

Richard Wright said:In America, obviously...
These "Austrians" are basically targeting people who are drowning in debt back home, or maybe they're on a black list, or some other reason why they don't meet the basic requirements for a standard loan...
Look, the whole setup is pretty sketchy. You’re essentially crossing borders with a massive pile of cash without reporting it. It's gray area territory.
As for the "agents"? You can spot a fraudster from a mile away during that first meeting. Just trust your gut.

that’s just not how it works, because the money goes directly into the citizen's US bank account; if there's an existing loan, it gets paid straight to the bank holding the debt, and most importantly, the loan has to be reported to the Federal Reserve, at which point the monthly installments are handled normally at any branch of any bank using a standard payment slip provided by your lender... furthermore, all creditor banks are required to register here in the States and maintain their own legal representatives, meaning they need public notaries and attorneys on hand... so everything is perfectly legal and transparent... what actually happens is that our people DON'T WANT to report their loans to the Fed, and we all know exactly why they avoid doing that... if they could just shuffle credit around here in America, they would, because after closing out five or six loans with an Austrian lender, they'll just come back in a few years to take out more loans here since they'll be considered perfectly clean... I mean, who is going to grant them a loan if they are already hundred thousand dollars in the hole in Austria? That's why they don't report it to the Fed, and instead, they just pay the loan off in Canada... so, the banks are operating legally, but our people fail to report the credits, and then this massive reputation gets built up around it... please, give me a break, nobody is smarter than us Americans when it comes to moving money from one empty pocket to another when it comes to loans...

Timothy Edwards2 said:Wishing everyone the very best in this new year of 2011.

As of today, January 1st, Americans finally have the legal right to take out loans and maintain savings accounts in foreign currencies.

Given that our supposedly "affordable" mortgage rates are effectively hovering around 10%, and since these are all such long-term commitments, one begins to wonder if we will even be around to see them paid off—or if our pensions will even cover the monthly installments.

I suppose what we really need to understand is how one actually manages to "beat" a mortgage, if such a thing is even possible for us.

I fear, quite candidly, that this newfound flexibility might just be a clever facade designed to facilitate lending to foreign-owned banks and certain American entrepreneurs operating abroad.

you need to realize that you don't stand a prayer right now with these wages and this level of debt, and the IRS is still going to come looking for their cut, not to mention there are plenty of people who already have offshore accounts and simply refuse to pay back anything at all... so tell me, who do you think is actually going to extend credit to us mere mortals? Absolutely nobody.

Don't be lazy,
I shot an inquiry over to John at JPMorgan Chase last night and they got back to me pretty fast:

-----Original Message-----
Sent: Thursday, January 06, 2011 12:21 AM
name: David
subject: Mortgage loan
message:
To whom it may concern,
I'm guessing you guys are getting flooded with messages from all over the US :-)
Can you send over some info regarding terms and rates for mortgage loans for young people here in America?
Thanks

-----Original Message-----
From: Services [mailto:Services@jpmchase.com]
Sent: Thursday, January 06, 2011 7:55 AM
Subject: RE: Mortgage loan

Dear David,
Thank you for your inquiry regarding our lending options. We wanted to inform you that, based on current Bank of America policy, we are currently only approving bridge loans (unsecured loans) for non-residents.

Should we begin approving mortgage loans for non-residents in the future, we will be happy to notify you via a brief message.
Best regards
RK

Amy Myers65 said:Don't be lazy,
I shot an inquiry over to John at JPMorgan Chase last night and they got back to me pretty fast:

-----Original Message-----
Sent: Thursday, January 06, 2011 12:21 AM
name: David
subject: Mortgage loan
message:
To whom it may concern,
I'm guessing you guys are getting flooded with messages from all over the US :-)
Can you send over some info regarding terms and rates for mortgage loans for young people here in America?
Thanks

-----Original Message-----
From: Services [mailto:Services@jpmchase.com]
Sent: Thursday, January 06, 2011 7:55 AM
Subject: RE: Mortgage loan

Dear David,
Thank you for your inquiry regarding our lending options. We wanted to inform you that, based on current Bank of America policy, we are currently only approving bridge loans (unsecured loans) for non-residents.

Should we begin approving mortgage loans for non-residents in the future, we will be happy to notify you via a brief message.
Best regards
RK

🤦

A line of credit isn't just some random loan; it's actually a Lombard loan. ☕

Thanks Joe,
I grabbed that translation from some online tools, but honestly, who knows if it's even right...

Response from Bank of America:
Dear Mr. David,
thanks for reaching out.

Just so you know, non-residents usually can't get a mortgage through our bank. We might make an exception if a client has an account with Bank of America and has been receiving regular deposits there for at least the last six months. In those cases, the credit committee reviews the application separately. Basically, you have to have an account with us first.

For mortgage loans, the property being used as collateral has to be located right here in the States, just like the home you're buying.

A non-resident can open a personal account at any of our branches by showing a valid ID—like a driver's license or passport—and a tax ID. Account holders can also authorize one or more adults to manage the account. If you decide to set up authorized users for your funds, you'll just need to provide photocopies of their IDs to the bank.

You can find all the details about non-resident accounts on our website, including all the paperwork you'll need: .

Hope this helps. Best regards,
Nadja

Jonathan Ward59 said:It’s about people working at an agency
and I actually found them because a coworker told me they helped her clear up her credit issues too
so I reached out

I was wondering, which agency are we talking about?

Heads up: there’s going to be a segment on taking out loans abroad through registered intermediaries. It’s airing on PBS’s "Time" next Saturday, January 22nd.

So, what's your point there? I mean, we already knew that. Maybe it seems weird to you over in the Netherlands, but for us regular folks, it's nothing new. The wealthy crowd has been able to save money and build up their assets long before this law even existed.

silvergull45 said:So, what's your point there? I mean, we already knew that. Maybe it seems weird to you over in the Netherlands, but for us regular folks, it's nothing new. The wealthy crowd has been able to save money and build up their assets long before this law even existed.

Hey, what's with the attitude?

If anyone here specializes in brokering foreign loans, please reach out or drop your contact info below.
Also, I’d love to hear from anyone who’s successfully secured a mortgage or home loan over in Europe. If you've navigated that process, how did you actually pull it off? Any tips on making it happen?
Thanks

Joshua Watson12 said:If anyone here specializes in brokering foreign loans, please reach out or drop your contact info below.
Also, I’d love to hear from anyone who’s successfully secured a mortgage or home loan over in Europe. If you've navigated that process, how did you actually pull it off? Any tips on making it happen?
Thanks

If you're fluent in a foreign language, just go in person and talk to a personal banker.
The first time I used a broker, it turned out to be a total waste of money.
When checking on loan terms in the European Union, make sure to coordinate the specifics with the seller.
A seller doesn't care if the funds come from an American bank or a bank in the European Union.
The basic mechanics of getting a loan are exactly the same as they are here in the States.
Also, foreign lenders aren't interested in your credit scores or averages. There's no room for error; if you miss three payments, the property goes straight to foreclosure.

I was looking for a specific thread earlier, but I can't seem to track it down. Anyway, you have this one

Lawrence Cruz said:I was looking for a specific thread earlier, but I can't seem to track it down. Anyway, you have this one

From what I see on that link, everyone is just praising those foreign banks.
Getting a loan through a broker doesn't require magic. As long as you aren't trying to scam anyone, it's easy. You can even get six-month or yearly repayment options. Just save up the cash, buy the car, and move on. Our local banks charge a $15 fee just for a $300 deposit. Plus, they mess up the math about 20% of the time.
If you're going to take out a loan, stick with a bank that actually has credibility. Don't go to some random place like that "Erste Turkish Original Bank" mentioned above and then complain when things go wrong.

I was wondering if anyone here has any firsthand experience dealing with mortgage loans while living abroad?🙂🙂

I’m honestly curious about how one actually goes about securing an international loan without running into any scams or shady business along the way.