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

[Patrik]

there is no constant answer for this, if you are capable of paying loans back, then you maybe can take the risk, otherwise no, also,i don't think that the bank will accept anything that's not yours as a guarantee for a loan

 

[Chibson]

There is nothing wrong in using inherited properties as collateral. Of course, you're the owner since you inherited them. If you want to take loans collateral like land is always required.

 

[Grant]

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?

That's the point of collateral. You use something that's worth a lot in case you can't complete a payment or deal. Otherwise, whatever you put up for collateral is going to be given to that person.

I think most people only do it because they expect to pay that money and keep their properties. A lot of people who use collateral often have to use something they own anyway, some people use houses, cars, jewelry they own, and so on.

 

[Damscooguns73]

Concerning if it is safe to use inherited properties as collateral when applying for loans. Well, I would say that if you have full ownership on that inherited land, it is something you can use a substitute or collateral since there is still an opportunity to have the land back after payment

 

[Mostee501]

It is risky because when you can't meet up to the loans, the institution that gave you the loan might auction your property and you'll loose it.

 

[Ehizzy1]

Its Very risky to make use if inherited property ,because you also need to consider that if you don't repay the loan they might move the business away and many more

 

[Spicywilfred]

An inherited property is already yours this means legally and traditionally it is yours. Using an inherited property as a collateral is not bad and should be taken equally as a land that was bought.

 

[Richard92]

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.

It is possible to use the inheritage property as collateral alone this is because the inherited property is now yours so you can use it as a collateral for loan.

 

[GIFTMICHAEL]

Always be careful when making such decisions. Remember failure to meet deadline put big risk of losing your inherited assets.

 

[Good-Person]

I really do not understand why people borrow loans if they have properties? If they want loans, they would have to mortgage their property and pay heavy interest rates to the lender or any financial institution that provides them loans. It is always a good idea to not to take loans and use your own money or property.

 

[Shigobad20201]

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?

Its not adviseable to use your inheritance as a collateral when asking for a loan, but since its your own inheritance and its not for the whole family, then you can use it for acquiring a loan.

 

[Cash%]

Iif you are sure that you would be able to repay the loan after borrowing the loan. Then i think you can take a go ahead and make use of the inherited property. Except you arent sure

 

[Setho]

General, banks would not accept disputed lands as means of collateral. So ad far as the land was lawfully willed to you and no dispute is attached then you can use it.

 

[Senator]

It is very possible to use inherited properties as a collateral for the collection of loans so long as this inherited property is yours by law.

 

[Promise]

Legally Nothing is wrong with using your inherited property as loan.vif the loan will help you grow your inherited property I think using it as loan will be appropriate

 

[Kunkun]

I see nothing wrong with using an inherited property or land as collateral when applying for a loan, what matters most is what you intend to do with the loan

 

[IamDozzy]

Once a property is inherited, it becomes the legitimate property of the new owner and hence can be used as a collateral to obtain loans from the bank. This means it basically qualifies as a collateral.

 

[Kelly5]

It is very okay and fine to use an inherited property as collateral for securing loans. But you will need to be sure that the property now has a proper document

 

[Prettyjanie]

Well for you to inherit a property, it means the property has become yours and you have the liberty to treat it as you deem fit. As regards using it for collateral, well once he pays back the loan, he will get his property back.

 

[Ub40]

To me I don't see anything wrong with what anyone decides to do with his or her own share of inheritance. Of course if he/she ventures into viable business with this loan and make enough profit, then he/she can still get back the property he or she used as collateral for the loan. That is my own opinion and contributions.