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

[Jonaville1]

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.

I know most of them ran out of options, so they had to resort to taking the loan. Still, most of them don't have a proper plan on how to repay the loan, and in the long run, they ended up losing the property.
My advice is, if there is no feasible measures to repay a loan, then they should not think of using properties like those to secure one.

 

[Ridorz]

Getting loan is not advisable, but if you must have to get a loan, then you can use the inheritance property to get it, but mind you make sure you have good reason to do such thing. You can get loan business but let it be the business you have knowledge and know in and out of it.

 

[Kamon c4]

Any property can be used as collateral when trying to acquire a loan. The most important is to have a means of returning the loan. However, it’s best advised to use properties you own.

 

[Seyesystem]

It is not advisable to use inheritance from parent as collateral for loan, there are other means of getting loan without collateral but depending on the amount you want to collect as loan . But if the amount is huge it may require collateral and if you think it worth you can go ahead

 

[Sammyesx]

If you are very sure of the business, then you can go ahead to get a loan, it is not like using it a collateral automatically means that it is already gone, just make sure your target when doing the business is paying back the loan.

 

[Kinglegend01]

I know most of them ran out of options, so they had to resort to taking the loan. Still, most of them don't have a proper plan on how to repay the loan, and in the long run, they ended up losing the property.
My advice is, if there is no feasible measures to repay a loan, then they should not think of using properties like those to secure one.

What do you now expect them to use as collateral,evidently they used that particular property because that is the only property they have that can match up the level of loan they want to acquire, again you mentioned that that most of them dont have a proper plan on how to pay back and end up losing the property,"that statement my friend is you been a stereotype" jus because you have seen alot of people that procure loans and are not able to pay back does not necessary mean all loanee cant pay back".

 

[Abibatabosede]

I do not see anything bad in using inheritance as collateral as far as the inheritance is meant for that person and he wants the loan for multiplying his wealth or making more money by using the loan for business.

 

[Oliver 20]

There are certain types of loans that accept inheritance as collateral. Probate loans, for example, allow you to borrow money using real estate assets you don’t yet have as collateral. These loans are also known as inheritance loans. With the money you receive from a probate loan, you could potentially turn around and buy a house.

 

[Damismiling]

To me the most important thing is how possible is the loan repayment, also what is the essence of the loan, if the loan is for business that returns on it is 100% certain all other things being equal then can go ahead to use it for collateral, if you are getting the loan for something not productive I would not suggest you use it

 

[Jonaville1]

To me the most important thing is how possible is the loan repayment, also what is the essence of the loan, if the loan is for business that returns on it is 100% certain all other things being equal then can go ahead to use it for collateral, if you are getting the loan for something not productive I would not suggest you use it

Exactly, you made a nice point. If the reason for taking up the loan is cogent and genuine, like using it to start or boost a business that will maximize profits, I guess the loan can be acquired, inheritance collateral notwithstanding.

 

[Gilead]

It all depends on the purpose. If the purpose of collecting the loan is for doing fruitful business or good investment and not for personal use then it's alright. Go ahead and collect it. There's no problem in that.

 

[Emma Aneni]

There’s something called desperation and I think once it comes in here. That is, when you’re desperate to have some money in your hand to do something or start a business you can use anything you have available. So using your inherited property is not bad so far you know you can pay the loan back in the future and have access to your property as well.

 

[Jonaville1]

There’s something called desperation and I think once it comes in here. That is, when you’re desperate to have some money in your hand to do something or start a business you can use anything you have available. So using your inherited property is not bad so far you know you can pay the loan back in the future and have access to your property as well.

You make a fair point. Some people are so desperately in need of money that they won't think twice before jumping into a loan, even at the expense of their property. At the end of the day, they get disappointed and are unable to pay back the money. Hence they lose their property.

 

[joy101]

For sure, in order for you to qualify for the loan, it is obvious that you must use your property as collateral for loan, so if you didn't pay back your loan on time to the lender,so the lender has the power to size your inheritance from you in order to repay load,

 

[Dowenship]

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 he's sure the business will bring good return to repay the money loan, but I don't think that's a good Idea, because land is an investment its own, how u can loan l two plot of land just because u want to boost ur business... What kill most of youth today is they av no patience at all...

 

[gammarays]

Inherited properties van serve as a collateral as long as the documents bear your legal name. You have to legalise the document or do a document transfer so it'll bear your name. Loans can only be given only when you're certified to be the legal owner of the collateral presented. You can't use a collateral with your parents name to take a loan.

 

[Adeyoola7]

Technically, you don't own your inheritance because it's not in your name. For this reason, most banks and traditional finance companies won't allow you to use your inheritance as collateral. You can't borrow against something that doesn't belong to you.

 

[btaliat]

If it is very sure that the person will pay, it is not something that is bad. But if the person does not have the means of paying it or doesn't want to pay, it is not proper because inheritance is family heritage which should not be forfeited for any reason.

 

[Jonaville1]

If it is very sure that the person will pay, it is not something that is bad. But if the person does not have the means of paying it or doesn't want to pay, it is not proper because inheritance is family heritage which should not be forfeited for any reason.

Well in a way you are right. The fact that he wants to use one asset to secure another might work if it is certain that the business he intends to use it for will yield massive profits. But in my friends case, I'm not sure.

 

[EMMANUEL]

Absolutely, you don't own your inheritance because it's not in your name. For this reason, most banks and traditional finance companies won't allow you to use your inheritance as collateral. You can't borrow against something that doesn't belong to you.