Is it safe to use inherited properties as collateral when applying for loans?

[Jonaville1]

I have come across a lot of people who want to take up loans, probably to undertake a project or start/boost a business. But what baffles me most is that some of them use properties they inherited as collateral. Someone I know used his 2 plots piece of land as collateral for his loan. My question is: is this a wise move? Inheritance should be valued more than anything, so is using it as collateral safe?

 

[Alexandoy]

You cannot be sentimental about the inherited property. Some people I know had sold the inherited property within one year because they need the money. Besides, being a collateral does not mean the lot will be gone. Unless they pay the installments of the mortgage then the collateral is safe and will be returned. For me, it is a wise move to mortgage the inherited property for a needed loan instead of borrowing money from individual lenders that charge usurious interest rate.

 

[Josemendez]

It is very obvious that one has to use a property that he or she owns while making a loan request. So , using a property inherited is not bad provided that the is ready to work towards repaying back the borrowed loan ,in order not to lose the property .

 

[Sake]

Well i don't see any problem with using inherited property as a collateral for loan because when you needed money i guess you just gonna do what you can. Also since they use it as a collateral and didn't directly sell it they can still payback the loan and take the property back.

 

[Taimoor Jutt]

I have come across a lot of people who want to take up loans, probably to undertake a project or start/boost a business. But what baffles me most is that some of them use properties they inherited as collateral. Someone I know used his 2 plots piece of land as collateral for his loan. My question is: is this a wise move? Inheritance should be valued more than anything, so is using it as collateral safe?

If we need money and want to achieve some goals then it can't be gain with having Chicken Hearted. You have to brave and have to take bold decisions. You have to sacrifice to get something.
But this is not a big thing as after sometime you will get your inherited house back. By my side there is no problem and don't think too deep in it.

 

[Frank]

I have come across a lot of people who want to take up loans, probably to undertake a project or start/boost a business. But what baffles me most is that some of them use properties they inherited as collateral. Someone I know used his 2 plots piece of land as collateral for his loan. My question is: is this a wise move? Inheritance should be valued more than anything, so is using it as collateral safe?

Well, I would not say that what they did is wrong since it is their inheritance now. If my dad passes a land as an inheritance to me, I can use it as collateral and hope that I can recover it once I am done paying up the loan that I collected. So, I see nothing bad in it.

 

[giddy]

To avoid issues why not take loan that does not involve collateral
These loans are offered by lenders in two main types: secured and unsecured. Secured personal loans are backed by collateral, whileunsecured loans are not. Because collateral reduces the lender's exposure to the risk of default, secured personal loans have lower interest rates than their unsecuredcounterparts

 

[Erik4150]

You can use an inherited property as collateral when taking a loan as long as it belongs to you and you are sure you will be able to repay the loan. There is wrong in using inherited properties and people take loans all the time, so it is normal to do what you have to do.

 

[Ralphjoe]

When there is a strong need for you to take a loan and the only collateral that you have to offer is an inherited land or house, then it's very advisable to use it as collateral, after all the inherited property is now your property so you can do anything to it. Your concern of it being valued does not apply because all properties should be valued whether inherited or bought.

 

[Aniwhyte]

Once the property has been inherited then it already belongs to the who inherited it hence he or she could use it for anything he wished to use it for, so in conclusion it is very safe to use it to collect loan or even sold it off as it is already fully yours.

 

[Nurudeen]

If the inherited property is yours and not for the general family's then you have the absolute decision to make on the matter. However, I won't still advice you to take a loan of any sort unless the loan wants to come with free interest rate which is not possible.

 

[Bilal0087]

I have come across a lot of people who want to take up loans, probably to undertake a project or start/boost a business. But what baffles me most is that some of them use properties they inherited as collateral. Someone I know used his 2 plots piece of land as collateral for his loan. My question is: is this a wise move? Inheritance should be valued more than anything, so is using it as collateral safe?

Yes it is quite safe in my country, you can take loan by giving them your property for some time, and then after returning the loan you can take back your properties.
But make sure to contact a sign between them for the surety and to avoid any type of conflict.

 

[chicnthin]

Using a property as a collateral would not mean it will be gone. It will only be gone if you failed to pay the bank. I think it's best not to take a loan if you're not confident that you can pay the debt. With or without collateral, you have the obligations to pay it.
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Using a property as a collateral would not mean it will be gone. It will only be gone if you failed to pay the bank. I think it's best not to take a loan if you're not confident that you can pay the debt. With or without collateral, you have the obligations to pay it.

Using a property doesn't necessarily mean it will be gone. It will only be gone if you failed to pay the bank. I think it's best not to take a loan if you're not confident that you can pay the debt. With or without collateral, you have the obligations to pay it.

 

[Ojonuyo]

For the sake of respect and honour to the past generations before you, who gave you the property, you should not use inherited property of as collateral for loans. As for me, it is not advisable to go for loan if you are not sure of paying back in money under stipulated time.

 

[Kinglegend01]

Although I dont actually like the idea of getting a loan and all but I don't think you should get too attached and sentimental over things like your inherited land and property. I believe alot of this people you were referring to would not like to get loan nor tending their property as collateral but they have to do so to stay off the red zone.

 

[Richard92]

Yes! It is save to use inherited properties as collateral for loan, this is because the property you inherited is now yours. You can only use what belongs to you to acquire loans from the bank and when you inherit property it becomes yours so you have the right to do what you please with the property.

 

[Bookwormlux1]

Before thinking about any loan, one needs to properly plan out how to repay the loan. If this is put in place and the inherited property is named after you, I don't think there is anything wrong in using it as a collateral for a loan.

 

[Kennysplash]

I have come across a lot of people who want to take up loans, probably to undertake a project or start/boost a business. But what baffles me most is that some of them use properties they inherited as collateral. Someone I know used his 2 plots piece of land as collateral for his loan. My question is: is this a wise move? Inheritance should be valued more than anything, so is using it as collateral safe?

It is a collateral, it does not mean you are saying bye bye to your property. Moreover it is your property as long as it is in your name, it is not everyone that uses collateral that acquired it, so no big deal.

 

[Rainlover207]

I don not consider it a wrong move to take a loan with an inherited property. It's all the same , whether inherited or not, it's still your property and have the rights to sell it off if needs arises.

 

[Janita]

You may be able to qualify for a probate loan that allows you to use your future real estate assets as collateral against a home loan. Then, if you don't make your loan payments, the lender will have the power to seize your inheritance from you in order to repay the loan.