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

[Abee111]

Is it safe to use inherited properties as collateral when applying for loans?
What is your thought about that?

 

[Alexandoy]

When you inherit a property and the title is transferred to your name in the legal way then that property is already yours. Of course, you can do anything with the inherited property and I don't see any issues. However, when it comes to using the property as a collateral it doesn't matter if it is inherited or not. As long as the property has the right value as desired for the collateral then I guess it is just fine. Regarding the business just be sure that you can get back the collateral in the appointed period. I know of several collateral that were forfeited by the bank for the unpaid loans of the borrower. If your business will not succeed then you may lose the property.

 

[sincerem]

Provided you have the legal right of the property it doesn't matter. What really really matters is the ownership being runner stamped. Then the company or banking institution will definitely offer loan to the seeker, provided the terms are met. But, if you know, you wouldn't meet up with the repayment interest, then you shouldn't proceed to take the loan to avoid the costly penalty that is associated with failure to meet deadline. Such collateral can be frozen because it is under written agreement with the money lenders or banking institution. That's why it is advisable to go for money we can afford to meet up without crossing the deadline of repayment.

 

[Kingsley]

To me this is not a wise thing to do, inheritance should be kept and possibly passed down to the next generation. Because this is something that was not a bought or made by the one who is inheriting it. When we use them as collateral to access loans it shows we do not appreciate them enough. Remember everything is a risk what about if we loss the money we got from the loan. Then we will lose both the inheritance.

I think we should work hard and make our own money to do what ever we like with it within the legal frame work.

Inheritance should be used up and not necessarily sold or used as a collateral, rather it should be used as part of the investment to start up a business. Unless the property that is been given as an inheritance does not have the nature of a tangible assent or cannot be worked on to produce further wealth. Then one might consider selling it and using the funds to establish a really business that will generate enough wealth that will always benefit the next generation otherwise it will be best to let it be and not use it to access loan.