More information on bulk loan sales

Where this is not, it will be another form of consumer credit. In some instances, a bulk loan taken out to purchase a new or used car may be secured on the car, in much the same way as a mortgage above, although the duration of the bulk loan sales period is considerably shorter, quite often corresponding to the useful life of the car.

The financial institution, however, is given security - a lien on the title to the house - until the mortgage is paid off in full. If the borrower defaults on the bulk loan sales, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. A mortgage is a very common type of debt instrument, used by many individuals to purchase housing. In this bulk loan sales arrangement, the money is used to purchase the property.