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

[kinqzbitz]

No it is absolutely not safe because then you will not be the only one that will be affected if the the property is seized,it will affect the whole family and so it is not advisable

 

[Ghost1]

If the inherited property is yours and not for the general family's then you have the absolute decision to make on the matter. However, I won't still advice you to take a loan of any sort unless the loan wants to come with free interest rate which is not possible.

Lol I don't even think the bank would consider that land as collateral. It must completely be yours, unless the loan if for all the parties involved

 

[tyrim88]

Getting loan is not advisable, but if you must have to get a loan, then you can use the inheritance property to get it, but mind you make sure you have good reason to do such thing. You can get loan business but let it be the business you have knowledge and know in and out of it.

One thing most persons don't really understand about getting a loan is that,its not just getting a loan that is the issue,but expecially if the prospect is just on paper,but you must be in the operation and running of the business to know how the cash flow not only work,but how it comes.

 

[Toyoabasi]

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?

What if you don't have any other option and you need the loan so badly?
You will need to use the Land as collateral.
If you value the land so much, you would have to work hard to repay the loan.

 

[greenie]

You can use an inherited property as collateral when taking a loan as long as it belongs to you and you are sure you will be able to repay the loan. There is wrong in using inherited properties and people take loans all the time, so it is normal to do what you have to do.

 

[Bookwormlux1]

There is really nothing bad in that provided the properties have been given To you officially, with all the needed documents ready in case of any issues that could present.

 

[Kaffyfolla]

Inheritance funding can be provided by either an inheritance advance company or an inheritance loan lender. The type of funding that is right for you depends on your needs and the type of assets in the trust or estate. In both scenarios, the process is generally simple and fast, and you receive your money quickly so you can use it immediately.

 

[Heatman]

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 is no financial institution that is going to offer you any kind of loan without accepting any collateral from you which is why it is always a gamble for you to apply for loan because once you cannot pay you already losing your collateral.

 

[jay]

Once the property has been inherited then it already belongs to the who inherited it hence he or she could use it for anything he wished to use it for, so in conclusion it is very safe to use it to collect loan or even sold it off as it is already fully yours.

I don't even call it property inherited but for those who purchase the property it becomes their own outrightly because you have already given up the property once you use it as a collateral for getting loan.

 

[Shigobad20201]

There's nothing bad in using inherited property as a collateral when applying for a loan since its your own personal belongings and you didn't sell it , you have the opportunity of regaining it back after paying .

 

[Sotherefore]

As long as the loan giving organisation is comfortable with the collateral you have offered because they will try as much as possible to investigate and know the real ownership of the property

 

[Shigobad20201]

It's actually safe to use inherited properties as collateral in obtaining loan from the bank so far its your personal inheritance and not the properties belonging to the whole family

 

[Sincerem]

Inherited property sometimes do not always have a document and as a result you will not likely be able to use it as a collateral except in rare cases. Banks and other financial institute will always need a collateral with official document.

 

[Smiles20]

The most important thing is that the land that you are trying to use should be an undisputed land and your family have agreed that it should be used as collateral before posting it.

 

[Shigobad20201]

In my own opinion, there's nothing wrong in using our inherited properties like land or house as a collateral in borrowing a loan from a loan sharks or bank , only if the land belongs to only you.