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

[Razor1911]

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.

By law, in our area inheritance doesn't come automatically. There is a complex procedure for it. The legal documents from all the signing party is needed and then only transfer of property may happen.

 

[Setfragil]

Using your property has collateral for a loan is a very risky thing to do except you are 100% certain that the loan will be easy to pay back at the agreed date unless it should be avoided.

 

[Ralphjoe]

It is very obvious that one has to use a property that he or she owns while making a loan request. So , using a property inherited is not bad provided that the is ready to work towards repaying back the borrowed loan ,in order not to lose the property .

The fact that one we need to stake his property just to be able to obtain a loan is very depressing for me and because of this reason I do not ever want to take a bank loan because I feel that it's a very enslaving activity for anyone to do.

 

[BrolySSJ]

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?

It all depends on the value of the inherited property and also if there are still payment to be made on it or if it is paid off. If it is paid off then sure you can take a loan against it because there is no extra financial burden to you.

 

[Senator]

Yes it is safe to use inherited property to apply for loan as collateral. But the catch here will be that this property must be duly registered and having your names as the rightful tittle owner

 

[Bousine123]

So long you are the current and legitimate owner of that property, you can use it for whatever you like, weather it's inherited or bought.

 

[Niftyyem]

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?

I don't see anything wrong in using your inheritance as collaterals. They are properties and inheritance or not, they are yours. When you have succeeded whatever you'd leave behind would be bigger and more valuable.

 

[Yusuf1]

If you are very sure of repayment with the loan, I don't see anything bad in using a property inherited from a parent to seek for loan. One just need to make sure that they are very ready to pay up.

 

[Richard92]

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.

It is safe to use inherited property as collateral when applying for a loan because that inherited property has now become yours and can be used by you to do anything you propose to do.

 

[Ralphjoe]

It is very obvious that one has to use a property that he or she owns while making a loan request. So , using a property inherited is not bad provided that the is ready to work towards repaying back the borrowed loan ,in order not to lose the property .

The thing is that you think your property as collateral for a loan is quite a risky move I know you can't say that she will not do it if you really need the money for a good business that you know that will definitely become successful so you have to see if the business that you want to use the loan to start will be successful or not and if not you can forget about taking such a loan.

 

[eLdavis]

After you have inherited it, it becomes yours so you can actually do whatever you want with it. If you decide to sell it's your choice on what ever you choose to do with it.

 

[Setfragil]

You can use an inherited property to stand as a collateral for a loan provided that you have all the necessary documents to back it up and also be sure that what you want to use the loan for is profitable enough to pay back the loan.

 

[akinlolu99]

You can utilize an acquired property as security when accepting an advance as long as it has a place with you and you are certain you will actually want to reimburse the credit. There isn't right in utilizing acquired properties and individuals take credits constantly, so it isn't unexpected to do what you need to do.

 

[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?

There's nothing bad in using your inherited properties as a collateral only if you inherited it alone , but its not adviseable to use joint inherited properties as a collateral for loan without the consent of the other members of the family.

 

[Richard92]

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.

Yes it is okay and why to use heritage property as collateral because that property has not become yours so you can use it for whatever purpose you want.

 

[Ruth]

When applying for loans you supposed to use your personal properties as a collateral, if at that point all you have is an inherited property then why not? it's not like you losing it, its just for a while and then its given back to you.

 

[Ralphjoe]

It is very obvious that one has to use a property that he or she owns while making a loan request. So , using a property inherited is not bad provided that the is ready to work towards repaying back the borrowed loan ,in order not to lose the property .

For me I can definitely use an inherited property as collateral for any business that I want to start and I only do that if I'm very certain that the business that I want to start with definitely be profitable.

 

[Thinker009]

If the inherited property is not illegal then there is nothing bad in making use of it , most people use inherited property for loans and they benefit after the business they use the loan for make sucess

 

[Mayox25]

There is nothing wrong in using inherited property to secure a loan so far it belongs solely to the person. If he is able to pay back the loan the property will be returned back to him.

 

[Kvngsammy]

If you're in total control of such property and you feel the business idea is workable and bankable. If not, you'll be in problem when the family members come.
I've heard from a rich man that he sold his property and then bought it later (I mean, I'll do same)