Loans

What Are Emergency Eviction Loans?

The economic downturns through the recent years have forced many people to tighten their belts as costs rise and wages stay the same.  The massive job losses brought on by the current global pandemic have created big financial problems for many working Americans. And these problems have forced them out of their homes. For these people, emergency eviction loans—like cash advance loans and other options—may be their only hope to keep a roof over their heads.  

If you’re struggling with making ends meet and battling eviction, you are not alone. Here’s what you need to know about finding emergency eviction loans.  

What Happens If You Don’t Pay Rent?

When you rent a home or apartment, the details of your rental agreement are in a document called a lease. The lease contains, among many other things, the payment schedule for rent. If you do not pay rent, that is considered a violation of the lease agreement, and the landlord can begin the process of eviction. 

What Does Eviction Mean?

Eviction is the process in which the owner of a rental unit removes a tenant from the property. 

The most common reason for eviction is unpaid rent, but eviction can also happen if a tenant breaches any part of the lease. Other common reasons for eviction include: 

  • Damages to the rental property
  • Consistently late rent payments 
  • Disturbing other tenants or neighbors 
  • excessive nuisance complaints about loud parties, fighting, trash on property, etc.
  • Unauthorized subletting (taking rent from someone else to live on premises)  

In the United States, eviction laws vary from state to state. Additionally, many cities or municipalities have specific regulations surrounding evictions. Generally, landlords in any eviction process must notify tenants that they are being evicted and cite the reasons for the action. Landlords must also tell the tenant when the eviction proceedings will begin. 

What To Do If You Get an Eviction Notice

If you have received an eviction notice, you need to take it very seriously. No matter the outstanding amount, your landlord can evict you if that money is past due. Again, it depends on where you live, but a typical eviction process starts 30 to 60 days past the rent’s due date. The eviction notice will be delivered to you and should detail the amount you owe and the final deadline for you to make payment. If you don’t settle by then, the landlord can begin eviction proceedings and obtain a court order to remove you. 

Battling Eviction In Court

You can’t stop the court order without paying the rent. However, you can dispute the action and fight it in court. Consider defending yourself against the eviction if: 

  • Your home needs repairs or lacks services (heat, running water)
  • You paid your rent in full, but the landlord claims that you didn’t. 
  • The landlord was offered a rent payment but chose to evict you instead
  • The landlord received a partial payment from you (the amount or percentage may sway a decision)

No one can remove you from your home during the eviction proceedings. But, should you lose your case, you may need to leave the property in just a day or two. You don’t necessarily have to have an attorney to represent you, but get one if you can.

Emergency Loans To Pay Your Rent

Whether you need help paying some or all of the rent, help is available for people who need a quick cash loan to pay the rent. Here are some options that will work as emergency eviction loans: 

Direct Installment Loans

A direct installment loan is paid back in equal installments. The borrower is responsible for paying the loan amount (principal) and the fees and interest of the loan in these installments. Installment payments are due monthly, weekly, or quarterly. 

These personal loans are good installment loans for bad credit. With these personal loans,  borrowers can get flexible rates and terms so that they can get the cash they need and be able to pay it back. The sea of options can be overwhelming. There are thousands of direct lenders available, with tons of installment loan packages that can cover just about any purchase, project, or plan you have in mind. Depending on your needs, your installment loan may include an interest-only payment plan, an interest-plus-capital payment plan, or even a negative amortization payment plan.

When choosing an installment loan, options are never a problem. Thousands of direct lenders are available, with tons of installment packages that can cover just about anything, including an emergency eviction loan. There are options for eviction loans of any amount with terms ranging from 12 months to as long as 96 months. Having the ability to tailor your experience can help you avoid added loan fees with a lender you can afford. 

It’s essential to make a decision that you can live with for a long time. That is why you only want to take a loan you can pay back on time and in full. If you get a direct installment loan, you must include the installment payments as part of your budget. 

Title Loans

If you own a car, you can use the title to get money to pay your rent. 

A title loan uses your car as collateral. You put up the paperwork outlining your ownership, and in return, you can borrow money from the lender. They usually cover vehicles, motorcycles, RVs, and trucks. 

The lender will hold onto the title until the borrower pays that loan back. In exchange for that title, a borrower can receive a direct deposit loan for up to 25% of the car’s value. 

The company then puts a lien on the title, which suspends the borrower’s vehicle ownership. Car title loans are no credit check loans that don’t need a high credit score for approval. That is not the case for most of the traditional loans available through banks and credit unions. 

And that approval decision can come quickly; some title loans can be processed, approved, and sent to your bank account. In most cases, you can have the money to pay your rent within an hour!

Car title loans are pretty short-term, lasting anywhere between two weeks and one month. But, unlike the collateral used for a pawnshop loan, you can keep driving the vehicle during the life of the loan. Title loans are a lifeline for people that can’t find a loan elsewhere. 

You can repay a title loan in installments or all at once. If you miss payments, the title loan company may choose to repossess your vehicle and sell it to recoup the money they lost from your loan. And as with almost all direct deposit loans, title loans have high interest rates. You’ll need to be careful not to fall behind with your repayments because that could lead to losing your car.

Pawnshop Loans

You can get a pawnshop loan for a small amount very quickly. If you need money to pay rent as soon as possible, a pawnshop loan is one of the fastest ways to get cash in your hands. These loans are secured using your valuable items as collateral. They are named for the place you can find them—pawnshops. 

Have you ever seen a TV show where a person goes to a pawnshop to put something in “hock” so they can get some much-needed cash? Those transactions are essential secured loans that use your stuff as collateral. In exchange for a valuable item (or collateral), the pawnbroker issues a borrower a loan. The amount is anywhere from 25 to 60% of the item’s value. Pawnshop loans have a term of about 30 days. Borrowers can make installment payments weekly or repay the loan in a lump sum at the end of the term. 

Like many short-term emergency loans, a pawnshop loan is expensive. They are about as expensive as the annual percentage rate (APR) on a credit card—about 25%. And if you don’t pay back the loan before the due date, the pawnbroker will keep the item and sell it in their pawnshop. It’s a risky venture for both you and the pawnbroker, so carefully consider a pawnshop loan before you come close to parting with your valuables. Use these only when truly necessary.

Payday Loans

Payday loans are short-term emergency loans designed to get you out of short-term financial trouble. In the best-case scenario, this loan offers temporary relief from financial stress. Payday loans are available in thousands of brick-and-mortar locations across the United States and are also available online. The application process is fast and straightforward. Most application processes only require the borrower to have a valid ID, checking account, and proof of income to apply. 

Once approved for a loan, you’ll write a personal check for the amount you want to borrow, plus the interest and processing fees imposed by the lender. The lender gives you the money and waits until your next payday to cash the check. For an online payday loan, borrowers supply their account information for electronic transfers. At the end of the loan term (usually about 14 days), the payday lender cashes the withheld check or withdraws money from your checking account.  Lenders accept payments through accepted through weekly installments as well.

Although they are convenient, a payday loan can be costly. If you don’t repay by the end of the loan term, the balance rolls over into a new loan—a process that comes with additional fees and interest.

Before you take on this type of loan, be sure that you read the fine print details. A little research can make all the difference for your overall financial health. A personal loan based on income may be a better option with lower APRs and more manageable loan terms since they typically carry lower fees and interest rates.

Rental Assistance

If you cannot afford to pay rent, there may be help available in your community.  There are agencies at the local, county, and state levels that offer rental assistance to those in need. These organizations offer eviction diversion programs to keep low- and middle-income families in their homes. In addition to providing direct grants to pay rent or find affordable housing, many of these programs also provide financial advice, job training, and educational opportunities. If your inability to pay rent is a long-term problem, search for these rental assistance outlets in your area today. 

In Conclusion

Being able to pay rent is one of life’s necessities. After all, keeping a roof over our heads brings comfort, safety, and peace of mind. If you are on the verge of eviction, it is crucial to act fast. No matter the situation, the first step is to open communication with your landlord.  Make every effort to pay rent, but when you can’t, start with an honest conversation. And do it soon; searching through options for an emergency eviction loan may take some time, so be sure to give yourself as much of it as you can.  

References: 
Eviction Process from the Tenants Union
For most Americans, real wages have barely budged for decades
How Payday Loans Work