"Financer"?

audboogie

New member
Jul 4, 2004
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I've heard, and know of people who let other people borrow money and in return the borrower gives the "financer" something is his in return. Now, im not quite sure how all this works, and was hoping of someone could explain in more detail. My first question was is it legal, and im told yes. Now, im not sure if that means yes its legal if you set up your own shop legally? So, the random guy on the street, is he legal? Next, people go as far as to give the financer the papers to their house in exchange for money. Now, is it as simple as if the person doesn't make their payments back, including interest, the financer can simply take his house????? I don't get it. #1 the name on the paper is of the borrower, how would the financer get his name on the house paper?
And finally, is this a dangerous business, I would think if an individual gave up the paper to the house, and didn't make the payments, how would the financer go about kicking the guy out of his house and his family etc. does the court do it? Also, do you hear of these financers being attacked? I mean, giving up cars, motorcycles, HOUSES???? Seems like a pretty dangerous job to me! Fill me in......
 

GringoCArlos

Retired Ussername
Jan 9, 2002
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Financiero. That's the term.

Yes, there are lots of them here in the DR. They make loans that compraventas cannot or will not make. A compraventa is a pawn shop.

Financieros are in a good, but tough business. They make loans with colateral, usually against land, or houses, or property, or cars. This being the DR, they also must able to recognize fake papers and documents, and good title. They also charge high interest rates. Think "lender of last resort".

This is not a business for foreigners to be in either. They usually not only ask for colateral, they ask for references, and follow them up. And they have to be able to collect if something goes wrong. And they DO.
 

audboogie

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Jul 4, 2004
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This is not a business for foreigners to be in either. They usually not only ask for colateral, they ask for references, and follow them up. And they have to be able to collect if something goes wrong. And they DO.[/QUOTE]


ok, now can you explain the DO part? If a guy borrows money from you, gives you the paper to his bike, then disappears, how do you collect? Go to your lawyer and the court takes care of it? Who would go out and find the guy?

I definitly agree, this would not be a job for a foreigner.
 

GringoCArlos

Retired Ussername
Jan 9, 2002
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They know how and where to "reach out and touch someone" to get their obligation fulfilled. Depends on the situation, right? Sometimes lawyers are the right approach, and sometimes, they are not. There are many ways to achieve the same objective, which is to be made whole. After all, this is the second or third oldest profession, right?