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

[Frank]

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.

I have seen cases where the parents before dying will warn the kids not to use the properties to collect loans and other things. What do you think will happen in this kind of situation? The reality is that you dare not disobey as that is just like welcoming difficulties into your life.

 

[Donkiz]

There's actually nothing wrong with using inherited property as collateral when securing a loan from banks or financial institutions. The most important is for the money to be properly utilized for why it was collected, so that repayment will be possible.

 

[Tanny]

It's ok to use inherited property as collateral as long as all documents proving that you are sole owner of the property and in case of joint ownership other parties should be carried along

 

[Kelly5]

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?

Of course you can that is if you are the authority of the inherited property, why not. it is your property, you can use it as you want. so I think it is ok and hundred percent very very possible to use inherited property as collateral

 

[Adetayo100]

Technically, you are not the owner of the 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 in the first place

 

[Zamaney]

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

 

[Rashid]

Yes you can even sell anything you want to facilitate yourself in your tough time. Yes there is no objection to for your inherited land to get loan. After return the said loan you will get your inherited land back in your ownership. So do not worry about sentiments it is normal , so carry on .

 

[Zevin]

I don't think you should risk your inherited property for collateral, even if you own the property fully. When you risk your inheritance for collateral and in case you cannot clear your loan, your property will put into the auction, you will be losing the property that had been in your family's possession. You should look for other options. For example, you can put your inherited property for rent and make money.

 

[Doradorwa]

If perhaps the land property is yours I see no reason for you not using that as a collateral to collect loan but if it is an inherited property you have to consult the other member of the extended family and is not really a good idea.instead of using the land property inherited property as collateral for the bank why don't you just send and split it with the other extended member of the family that is even more preferable.

 

[ossai]

When using your property as a collateral, you need to think deep, while you have plan A, make sure there is plan B it is very important, because you don't put all your eggs In one basket, the business you want to take loan from think about it before you take a move, ask questions ,make research. Do your own personal research, I am telling you base on experience.

 

[Kelvin7656]

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.

 

[mayreeh38]

Using an inherited property I think is even the best means of getting a loan. Because it is an inheritance, I believe you will do everything in your power to get that property back, unless you do not value the property that is when you will neglect it in the hands of others.

 

[Olubayo12]

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?

One the said properties bear your name and everything about you, whether inherited or bought, it is yours and you are permitted under the law to use anything that belongs to you as a collateral especially if the loan companies accepts such as a collateral.

 

[Diamond07]

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?

Only if the inherited property belongs to you alone. In the case of joint ownership within family members, it will be a very bad idea to use such property as a collateral. There are risks that comes with taking loans

 

[zenith]

If he is sure if the investment and he knows what he doing why not?but I hope that property is his own inheritance and not with his brothers or sisters because if he is not the only one if anything happens they will not take it lightly.i have heard what property has caused between families.

 

[Shayo]

You use what you have to get what you want, in this case, banks or loan company will only accept valuable asset so you use the asset you have, be it inherited or not. Although, I don't think it is a wise move, but if you are sure you will be able to pay back, then there is nothing bad in trying.

 

[Muhammadawais]

You may be eligible for a Probate Loan that allows you to use your immovable future assets as automatic information against a home loan. Then, if you do not repay your loan, the lender will have the power to usurp your inheritance from you in order to repay the loan.

 

[Godleads1]

The property you inherited means that the ownership of such properties has been handed over to you. So, you can do as you dim fit with it. Using it has a collateral doesn't mean anything. You are using what you have to get what you want.

 

[idhans]

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?

Your property is always your property whether it is inherited or not inherited as long as it is your property you can always use it to apply for loans. There is nothing wrong in obtaining loans provided you are obtaining the loan for a very good reason like business and investment.

 

[chommyluv]

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?

in my tribe it's so wrong; its not good to use one's inheritance that lingered from generation to generation to take up a loan which you may end up not fulfilling your own end of the contract and end up losing your inheritance. So its not a good idea.