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

[Dubai]

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, there is absolutely nothing wrong in using inherited properties as collateral for loan acquisition. If you have inherited the property wholly then there is nothing to worry about. The only issue you have is if you wouldn't be able to pay back the loan. If you are sure you'd payback, then go ahead with it.

 

[Profwriter]

If the property was willed to you, you may use it because it's yours but if not, that won't be too good. Every loan carries risk of becoming a bad debt most especially in this unstable economic moments, you don't want to have problems with the bank and end up loosing what is not yours.

 

[Highflyer]

I don't think it is a wrong thing to use inherited properties for a collateral when you apply for a loan. You have to use a property anyway, so you can use inherited ones, you should however ensure it isn't something you really value that much.

 

[Oluwasube]

If the house property have been willed completely to you, then you have every privileged and authority to use the property for a loan application

 

[Setfragil]

You can use an inherited property to apply for a loan provided that the reason for applying for the loan is well justified. If the loan is for a business that is certain the profits will be made on time to pay back the loan it is advisable to take the alone. Inherited property or not the property is your own so far you have all the documents to backed it up, you can use it to apply for a loan.

 

[singlej007]

I we only support you use inherited property if you are the only one left behind or the property was given to you totally, but if there are still other members of the family left, then is not advisable at all..

 

[Chumzy]

When a property is inherited it is assumed that owner shop has changed hand. Now regardless of what the item or the asset in question is and the value. It would still belong to the new owner but then using as a collateral is not hindered.

 

[Chizfab]

Why not? Since you are now the owner. Once a property is inherited in your name with the necessary legal requirements and documents, the property automatically becomes your own. So you can do with whatever you want without disobeying the law. However, not every bank accept such collateral until legal clarification.

 

[Kehinde]

inherited property isn't possible in most situations as banks will not provide a loan to a borrower who isn't on title of the property. Refinancing a property with multiple heirs isn't the type of loan request a bank is able to fund.Lenders who make these inheritance loans will require monthly payments on the loan.

 

[Ibrahim1]

As for me it's not safe to use inherited properties as collateral when applying for loans in bank because it doesn't make any sense and why will you do that in the first place and this about your father's properties and how will you feel when bank took over it and later saw it, your mind going to judge you and going to tell you, you have done wrong thing also why don't you find another way to get the loan than using your property or your inherited one hun
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As for me it's not safe to use inherited properties as collateral when applying for loans in bank because it doesn't make any sense and why will you do that in the first place and this about your father's properties and how will you feel when bank took over it and later saw it, your mind going to judge you and going to tell you, you have done wrong thing also why don't you find another way to get the loan than using your property or your inherited one hun

 

[James07]

This will entirely depend on the terms of inheritance, but since it is not your land, i would rather use it to raise capital to buy my own and sell mine instead. Since it was handed down to you, i'd rather hand it down to someone else to help them the way it helped me.

 

[Ehizzy1]

Yeah itis ,because that is what eould demand for when you are been asked to collect those loans ,and if you don't have the necessary colateral might not be given loan

 

[Victor001]

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?

When you say inherited properties it definitely means it belongs to you so if to be used as collateral then there is no reason to opt for it as long as you are not slandering it for cheap scores

 

[Setho]

Before you even plan on taking a loan, there should be a laid down plan on how to pay back. There is no need to be sentimental about using an inherited property because the person that passed it on to you actually did it because he wants you to thrive so I think you should go for it.

 

[Rachelgold]

That will depend if the inherited property is solely yours and not for the entire family members. Even if it is yours you have to be sure that you'll be able to meet up with the repayment of the loan and retain the property at the end of the day this is because some families do attribute a lot of traditional beliefs to inherited properties.

 

[Adventurer]

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?

Not a wise move unless, unless the person wants to forfeit the property or if the person does not hold any sentimental attachment to the property

 

[Niftyyem]

Although the property was inherited, it still remains yours to do with as you please. Many have put up inherited land for sale or as collateral for funds needed for important things.

 

[tyrim88]

When it comes to doing business ,and you have the idea and requisit skill to do the business but no finance and the only option is to use your property to finance it.
you have to go ahead.

 

[Sheyemanu]

Concerning your question on if I can use inherited properties as collateral for loans maybe for a business or something, I have to say that i see no problem here at all as it is an inherited property and it's now yours and in your name

 

[Setho]

I find it quite amusing that at this age in civilization people still believe in all these mights that are being attached to lands like this. To me there is nothing wrong in it as far as there are no disputes concerning the land and its or rightfully yours.