While both secured personal loans and unsecured personal loans are offered based on your individual credit history, secured loans also require collateral that Best Egg can access if you default on your loan.

For starters, traditional home equity loans use your entire home as collateral, while Best Egg Secured Loans are only secured by the fixtures in your home – not the home itself. It’s this unique difference that helps us get you the rates you deserve without putting your home at risk.
In addition, traditional home equity loans may take several weeks to fund, involve multiple in-person appointments, and require extensive amounts of paperwork. With a Best Egg Secured Loan, you can complete everything online in a few minutes and receive your money in as little as one day.

A lien is a right you grant on something you own – called collateral – to secure a debt. It gives a lender the right to take possession of this collateral under certain circumstances.
If you decide to take out a Best Egg Secured Loan, Best Egg will give public notice of the lien by filing a document called a UCC-1, usually with your local government. If you have more than one Best Egg Secured Loan secured by the same collateral, then Best Egg will file only one UCC-1 notice covering all the liens under your loans. Best Egg will release each lien when the related loan is fully repaid and will release the filing when all such loans are fully repaid.

The collateral used to secure your Best Egg Secured Loan(s) could include anything you typically wouldn’t take with you if you were to move to a new home – think window shutters, built-in bookcases and shelves, ceiling fans, water heaters. Some states define fixtures slightly differently, but generally collateral does not include personal items, household goods, or appliances that are not permanently attached to your home.

No. Each Best Egg Secured Loan is secured by the fixtures in your home, regardless of their value. Best Egg does not assess that value and it has no impact on your eligibility.

If you file for bankruptcy, your home is foreclosed, or you sell your home and do not repay your loan within 30 days of your home’s sale, then each Best Egg lien on the fixtures in your home gives Best Egg or future owners of your loan the right to repossess those fixtures.

Other potential lenders may take the Best Egg lien(s) into account in their decision to lend money to you. Of course, potential lenders may also consider the level of your overall debt, including your Best Egg Secured Loan(s), in reaching their decision.

If any co-owners are listed on the deed or title of your home, at least one will need to provide consent for your Best Egg Secured Loan(s), including the lien(s) against the fixtures in your home. We may also use publicly available data sources to identify or confirm any co-owners of your home and to name them on the UCC filing with respect to your loan(s) as required by local rules. With that said, co-owners will not be considered borrowers and will not be responsible for repayment of your Best Egg Secured Loan(s).
If you reside in a community property state, then Best Egg will require your spouse or domestic partner to provide their consent for your Best Egg Secured Loan(s). Please check your state laws and the additional information below and review your Loan Agreement for information on how your Best Egg Secured Loan(s) may affect your spouse or domestic partner.

The Best Egg Secured Loan is currently only available to homeowners with equity. If you don’t have equity in your home, you may still be eligible for an unsecured Best Egg personal loan!

If you need to replace something in your home, no worries. Replacing your existing fixtures, or even deciding not to, will not impact the terms of your Best Egg Secured Loan(s).

Nothing. Because the collateral for your Best Egg Secured Loan(s) is fixtures in your home, and not the home itself, Best Egg cannot foreclose on your home.
If you run into an issue making a payment on your loan, please contact us so we can discuss any options we may have available for you. Missing one or more payments could impact your credit score.

Your mortgage lender may require all liens to be removed before you can refinance your home. Best Egg will only release the lien(s) and the related UCC-1 filing when you repay your Best Egg Secured Loan(s) in full.

Your home may be more difficult to sell, as potential purchasers may require that the lien is removed at or before closing the sale. If you sell or transfer your home without repaying the loan in full, the lien will remain, the new owner will be subject to the lien, and your loan will become due immediately and payable.

If your home is sold before repayment of your Best Egg Secured Loan(s) in full, Best Egg could declare your loan(s) in default, making your unpaid balance immediately due and payable. Note that the selling price of your home will not affect the remaining balance on the loan(s).

Although Best Egg will never foreclose your home, we may participate in your bank’s foreclosure process so we can collect the unpaid balance of your Best Egg Secured Loan(s). If the foreclosure process doesn’t satisfy your obligations, Best Egg could declare your Best Egg Secured Loan(s) in default, making your unpaid balance immediately due and payable.

Some states in which Best Egg Secured Loans are available grant certain property rights and obligations to people who are married (including registered domestic partnerships and other similar legal relationships in some states). In these states, a person may automatically have an interest in property acquired by the other party even if you are not both named on the deed or title.

The Community Property states in which Best Egg Secured Loans are available are Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin.

If you receive one or more Best Egg Secured Loan(s), then the fixtures in the home you listed as your address on your loan application will become collateral to secure repayment of the loan. If this address is in a Community Property state, then your spouse (or other person who has community property rights under state law) may have an interest in the property, including in the fixtures. Best Egg will therefore require assurance that each of you, and any other co-owner of the property, are aware of your Best Egg Secured Loan(s) and will not block access to the property or interfere with our ability to collect on or enforce your loan as described above.

If you are a resident of a Community Property state and are in a relationship covered by Community Property laws, then both partners must consent to your Best Egg Secured Loan(s). The Best Egg team will contact you both with instructions on how to provide consent electronically.

This can vary depending on the state that you live in, and we would recommend that you seek legal advice if you have a question about the legal status of your specific situation. To finalize your Best Egg Secured Loan(s), however, Best Egg will require both you and your partner, and any other owner of the property, to consent to your Best Egg Secured Loan(s), including the lien(s) against the fixtures in your home.

While each state may vary, generally Community Property states view assets – including residential property and the fixtures in the property — acquired during the marriage or legal relationship as equally owned by both parties, regardless of who purchases the asset or whether both parties are named on the deed or title.