What is a Certificate of Claim?
The Certificate of Claim is essentially a document that establishes a specific covenant within the broader agreement between a lender and a borrower. Essentially, the certificate established a contingent promise on the part of the borrower to cover any and all expenses involved in a foreclosure on property or legal actions taken by the lender in the event that the loan goes into a default status. The Certificate of Claim ensures that the lender will eventually be able to recover his or her investment in the borrower, regardless of the circumstances. It is not unusual for the Certificate of Claim to include specific information about how the final amount due to the lender is calculated. Generally, the lending transaction empowers the lender to seize control of collateral and other assets in the event that the borrower does not honor the payment schedule. This approach is often included in any loan arrangement that involved high value items, such as property, homes, or automobiles. In th
” The Certificate of Claim is essentially a document that establishes a specific covenant within the broader agreement between a lender and a borrower. Essentially, the certificate established a contingent promise on the part of the borrower to cover any and all expenses involved in a foreclosure on property or legal actions taken by the lender in the event that the loan goes into a default status. The Certificate of Claim ensures that the lender will eventually be able to recover his or her investment in the borrower, regardless of the circumstances. . It is not unusual for the Certificate of Claim to include specific information about how the final amount due to the lender is calculated.
