Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [collateral]

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Would using an expensive car as collateral for a small loan to get cheap parking work?

There's a rather old joke which is being told in many variations and my question would be whether events narrated could actually happen in real life. I'm not in the US so I don't know all the details of how banks work in the US. The joke goes…
sharptooth
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How do I lend money to a friend for a car and put the car as collateral?

A friend of mine wants to buy a car, but does not have the money for it. Instead of him going to a bank and borrowing the money to buy the car, I was thinking of maybe taking some cash from my bank account (that is currently only earning 2% a year)…
Jonathan
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Why would collateral be required to make a stock purchase?

I've been reading this page on the recent GameStop short squeeeze. It mentions that at one point Robinhood and other brokers prevented their clients from purchasing shares of GameStop (GME): On January 28, some brokerages, including Robinhood,…
Metamorphic
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When can you use existing real estate as collateral to buy more?

My grandfather owned a dozen apartment buildings, and when I asked him when I was little how he got so many, he said he just bought one, and then used it for collateral to get the second, and so on. He has since passed away, but he wasn't the sort…
temporary_user_name
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If I purchase a house through an installment sale, can I use it as collateral for a loan?

If I use a mortgage to purchase a house, I can use the equity (which I'm assuming is fair market value minus what I owe) as collateral for a bank loan (second mortage, home equity line of credit). Can I do the same if I purchase the house through…
AOM
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What return should I require when guaranteeing a loan with my home?

I put up my home as collateral for my son's business loan. What kind of return should I expect?
Vince Lara
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Is there a financial product via which I can safely temporarily borrow against my home?

We live in the UK, and are seeking to move house and have seen a property which suits our requirements and has been discounted because the owners wish to sell quickly. The asking price is £400,000. Our property has not sold - it's only just gone on…
Bob Tway
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Home loan for Granddaughter

Can I use collateral of my $325000 home which I own in Australia to help my granddaughter buy a house in her name. Can the repayment be structured as Interest Only for initial few years. She is studying law at university and may not be able to pay…
pat brennan
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Can someone else put up the collateral for a loan?

We were talking today at work and I am curious... Say an individual (Mary) is looking at a 20k bank loan. Mary has no assets to secure the loan. Could some else (Joe) (parent, friend, sibling,whoever) lend Mary the collateral, say a title or…
JME
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How much equity do I need for a pledged asset mortgage to prevent PMI?

I've been saving up to buy a home, and I've primarily grown this money with stock investments. When I do decide to buy a home, I'm not too fond of the idea of putting all my savings into a mortgage down payment and using the rest to pay for capital…
Pluto
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Do mortgage lenders ever prefer bad credit?

In the US, If you want to put $400,000 down and borrow $100,000 with a mortgage to buy a $500,000 home, is it really so important to have good credit with so much collateral? If you were to default the bank will get all that equity so it seems…
Lowbrow
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Would a bank take shares in mutual funds as security for a mortgage instead of a down payment?

Let's say I have 20% (or more) of the mortgage principal as shares in a mutual fund. I could cash out the shares, pay my cap gains tax, and pay it to the bank as a down payment. But is it possible/a good idea/feasible to secure the down payment…
Jeremy
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How to give collateral loan for car in India?

My neighbour wants a loan on his car. What are the legal procedure to give such a loan?
Abhay Kumar
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Is it ok to buy something on your credit card due date?

This is my first credit card so I'm a little confused. I'm with Capital One and my due date every month is the 6th and my minimum payment is $25, and anything less than $25 (example if I have $16 on it) would need to be completely paid. Well, I had…
tamermist
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Can a guarantor's personal property be repossessed if the other person doesn't repay the loan

If I am the guarantor for someone else's loan, can my personal property be possessed if the other person doesn't pay back the loan? Also, can my property be mortgaged as a guarantee to his loan?
user48711
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