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

[kayode10]

If you are going to use such a property as a collateral, it must be a business you are very sure of the returns and you are very certain that things would not go south. I would advise you to desist from doing so if you are not certain about the outcome of the business. If would like to go for the loan, probably you look for another means of getting the loan other than using the inherits property.

 

[Adam13]

I do not see any problem with using inherited property as collateral. They are yours by the way. Most people even sell theirs for the money. But if the property is of tremendous value is nit advisable to me, especially if the loan you're applying for is not up to the properties' value. Anything can happen. Anytime.

 

[Trexxxy]

Why didn't the person just sell it instead of putting it up for loan. Well I understand the move, it might be possible that the purpose of which the loan is meant for is succeful, he might be able to return the loan and still own the property.

 

[Chumzy]

At this point I am tempted to ask if there is a difference between inherited properties and the ones bought. If a property is inherited legally and genuinely without any lie or agenda, I don't see why the question. Maybe you are scared of losing the property and then the respect to the Perosn who passed it on to you, you just have to be careful

 

[Tiwa]

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?

You inherit something to be if good use for you in your lifetime .
If you need funds or capital to start off a worthwhile business or something of important to you and there a an inheritance that can give you the leap forward,would you rather you don't step.forward with it just so you can hold on to it?
I know the emotions attached to inheritance and gifted items but they are meant to impact your life positively .That's the purpose .

 

[Abigael]

This depends on your values as an individual and that is guided by your traditional or religious beliefs among other things. In my country, inheritance is valued so much as family property to be cared for and valued. But some people have let go of those beliefs and values and can use the inheritance in any way they want.

 

[Seun4luv]

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 you as collateral. You can't borrow against something that doesn't belong to you

 

[btaliat]

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.

If you are not sure, then it is not advisable to use inheritance as collateral. It shows lack of respect for the deceased that bequeathed the inheritance. He should source it from other place or even sell the the building and start a business that requires lower capital.

 

[GIFTMICHAEL]

As long as it has been confirmed that the said property belongs to you with legal documents Attached and signed.
It is safe and completely acceptable to use inherited property for collateral.

 

[Pirate]

Unless there's a generational curse attached to losing the land then there's absolutely no problem with using an inherited property as collateral. It is called inheritance for a purpose, it was passed down to you so it's now your property and you can do as you please with it.
Sentiments shouldn't be dragged into such, because those sentiments cannot give you money.

 

[Peppul]

Most people do this on a daily basis and it's not a new things but at the same time it's not a good thing to do such with an inherited land, why decide to be the black sheep of the family, I believe there is a reason why your ancestors didn't sell the land and decided to pass it to the next generation, instead why not build on it, because using the land for a loan might result to you loosing the land.

 

[ahmedo24]

You definitely have to use what you have to get what you want , so if you are taking loan for a bigger business that will yield good profit offocourse it is the easiest way instead of placing request to many people that will promise you heaven and disappoint in the long run.

 

[eenya001]

Please don't ever use your inheritance as a collateral to collect a loan, it's not advisable at all to do such. It's better you look for a way in raising such capital.

 

[Josemendez]

To avoid issues why not take loan that does not involve collateral

Can there be any loan that does not involve collateral ? , I doubt if such type of loan exist . Institution that gives loan will always demand something to leverage on in case the borrower fails to meet up with paying back the loan as at when stipulated .

 

[Sotherefore]

I don't think this really depends on you and from what I can see here you do not have the power to decide any of them because if you present an inherited property as a collateral for loan you will not be the one that will decide,I think the organisation that is giving the loan will decide if they will accept an inherited property as a collateral for loan or not,if they do accept that then you are lucky but if they do not accept well you still have to move on.

 

[Goodday]

For me l don't see using inherited property as a collateral security for loans to be a problem at all. If only you are qualified to be the right owner of the property by having the legal documents to such property, l don't see any problem associated with that.

 

[Jonaville1]

For me l don't see using inherited property as a collateral security for loans to be a problem at all. If only you are qualified to be the right owner of the property by having the legal documents to such property, l don't see any problem assoc

For me l don't see using inherited property as a collateral security for loans to be a problem at all. If only you are qualified to be the right owner of the property by having the legal documents to such property, l don't see any problem associated with that.

Maybe it is not wrong to use inherited properties for collateral. However, wouldn't it be good to at least be sure of what you are collecting the loan for? According to my little experience, borrowing to start a business is generally not a good idea.

 

[Adexgrace]

Well, using inherited property as colateral for loan is not a bad idea and also not a nice, but it depends on the type of property it is or what type of family you are from. If it a family where cooperation exist, itsnt bad. But if a family with issues, its better not use.

 

[Holluwaphemmy]

You can use the interrupted property for loan of and only if the property is fully yours. Is the property is for you and you alone, you are good to go and no reason restriction, but if the property is for you and your family, I am sorry, you can use it
[automerge]1611002945[/automerge]
You can use the interrupted property for loan of and only if the property is fully yours. Is the property is for you and you alone, you are good to go and no reason restriction, but if the property is for you and your family, I am sorry, you cant use it

 

[Sariana23]

Yes, the inheritance can be used to apply for loans, I do not see any problem as long as the documents are legal, and he is the sole owner of said properties. The most important thing in this case is the knowledge of what the loan entails. If he is not punctual and responsible in the payments, there is the possibility of losing the inheritance.