The land belonged to my father and was recently deeded to myself AND my brother and sister. Can I use that as collateral for a bank loan?
2007-09-29 02:09:54 · 10 answers · asked by dewars1960 1 in Business & Finance ➔ Personal Finance
Since you capitalized the "AND" in your question, I assume you mean that you have a one third share of an undivided piece of property.
If your loan is a mortgage to buy out your siblings shares, then yeah, the land can be collateral.
Otherwise, your brother and sister, AND THE BANK, would all have to be nuts to allow you do such a thing. Just think of the mess for all of them if you default. They would then be mired in partnership not of their intending.
I would think that you will have to be a real sweet talker to make this deal. But hey, you can try.
2007-09-29 03:43:02 · answer #1 · answered by veritas 5 · 0⤊ 0⤋
As a rule yes. But you may not be able to because of zoning laws, or it may not be advisable. But there may be other catches, buy a home instead, from a builder, get it customised or custom build it. Things like utilities, water, sewer and telephone or even cell phone may be a problem, so you need to be care full, I know of people sitting on a beautiful parcel of land and paying taxes and are not able to do nothing with it. Check out every thing. This must be your first home then get good advise from a local lawyer and a banker, make sure both banker and the lawyer (he/she) has no connection or interest in the property that you are purchasing. Plan ahead do the investigating before purchasing.
2016-05-21 03:59:42 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Only your portion. The land will have to be surveyed if the bank requires it which may cost thousands of dollars. I work for a land surveying company and using land for collateral is kinda hard sometimes...It depends on what kind of loan you are trying to get!
2007-09-29 02:15:00 · answer #3 · answered by Anonymous · 1⤊ 0⤋
It depends on how much equity you have in it. Ask a loan officer about HELOC loans or closed end second loans. They subtract the appraised value of the property from what is owed on the property and that is the amount of your credit line. You can get this information easily off the internet. You can use the money for anything you want even a car.
2007-09-29 02:15:50 · answer #4 · answered by dpepperdrinker 5 · 0⤊ 1⤋
If you own the land with your brother and sister you'll need their approval to use it as collateral. You don't own it's full value, only a third.
2007-09-29 02:14:51 · answer #5 · answered by Classy Granny 7 · 1⤊ 0⤋
Yes
2007-09-29 02:12:29 · answer #6 · answered by one two 3 · 0⤊ 1⤋
Yes as long as you can prove you own it.
2007-09-29 02:12:26 · answer #7 · answered by Anonymous · 0⤊ 1⤋
as long as you have the paperwork i dont see why not
2007-09-29 03:05:31 · answer #8 · answered by arizonaprincess2 5 · 0⤊ 1⤋
yes it can
2007-09-29 02:14:48 · answer #9 · answered by Anonymous · 0⤊ 1⤋
You certainly can. Use it wisely!
2007-09-29 02:12:51 · answer #10 · answered by Veritas 7 · 0⤊ 1⤋