Questions tagged [collateral]

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Can Leased Assets be Collateralized?

Consider leasing something. Typical examples are a three-year car lease or renting an apartment. Although there is no "down payment" per se, typically, a lessee does put some sort of ...
1 vote
2 answers
418 views

Why doesn't just everyone mortgage a property from bank, rent it out and make monthly payment to the bank by that rent?

I don't have any background of loans and finance since I am an Engineer, but I have been planning to own a property lately. What I understood from my research is that there are two options to get a ...
1 vote
1 answer
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Would a hypothetical, ever-appreciating asset allow for infinite collateralized loan-rolling?

If I owned a hypothetical asset that was deemed extremely safe, and permanently increased in value over time (allowing me to borrow a similar percentage of the asset's value each time the loan reached ...
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2 answers
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Can my property be taken as a payment for a relative's loans?

My aunt went to several loans to which she isn't capable of paying as of now. Now, the lenders are visiting our house and trying to find her and she currently lives in the same residence with me, ...
1 vote
1 answer
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What does "collateral" mean for an ETC?

I am looking at different Exchange Traded Commodities (ETCs). I noticed that some ETCs have a collateral level of 50% and other may have 100%. What does this collateral number mean? Is it how well the ...
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23 votes
4 answers
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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 ...
1 vote
1 answer
679 views

In a trading account what is the difference between margin and collateral?

What does it mean when someone says a trade requires 10%, 100% or 150% margin? What kind of calculations are required when you talk about margin and collateral? What is a margin call and when does it ...
4 votes
1 answer
430 views

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 ...
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2 votes
2 answers
282 views

Is it possible to use securities as a collateral?

I own about 200k worth of ETFs(SPY, VOO, QQQ, ONEQ, VCLT, VTWO, VT). Is it possible to put them down as collateral for a loan in the future? I need money for two things in the future: Getting a US ...
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0 votes
1 answer
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Why does short-selling treasuries require significant collateral?

In the vein of this question, I'm curious about getting a loan by selling treasuries. The issue, apparently, is that the proceeds of the short sale is held as collateral. As I understand it, however, ...
38 votes
4 answers
16k views

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 ...
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2 answers
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buying property , loan and collateral

If one owns a property that's worth 200K, is it possible to get a loan to buy a second rental property for 100K, given one owns the first property outright, using it as collateral? Does this person ...
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-2 votes
2 answers
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Is there a more collateralizable home?

Consider a situation where a loan officer examines the degree of collateralizability of a real estate. For example, one could compare: Sturdiness: wood v. brick. Flood/Tornado Plain: more vulnerable ...
2 votes
1 answer
121 views

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?
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0 answers
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Is there a specific term for a collateral with a value less than what has been declared?

In other words, a collateral value has been estimated more than its real value. Is there a term for this type of collateral? Is the term "over-declared collateral" correct in this sense?
5 votes
2 answers
264 views

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. ...
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2 votes
0 answers
110 views

Borrowing or raising funds against ISOs

I have some ISOs that are exercised (early exercised/bought) from two different companies I worked at. Their current values are around $15k each. These amounts aren't enough to transact with ...
1 vote
0 answers
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Collateral and property

I purchased a boat slip for 20,000. I have my cancelled check from the seller. The seller secured a loan using my paid slip as collateral. A UCC was filed because the guy defaulted on the loan and now ...
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0 votes
2 answers
106 views

Out of state property for a secured home loan

How can I use a house fully paid in New Orleans as collateral to purchase a house in Washington state? Do I need to have the New Orleans house appraised? In 2010 my dad died leaving me the house he ...
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0 votes
1 answer
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How to get the most mortgage from the bank?

I am looking to buy a second house which is about $800K (A 1600-sqft, 3b3b condo in the suburb). I intend to live in this house as well as renting out two bedrooms for roughly $1200 per month each. I ...
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Paying off a Line of Credit and buying a house

I have an offer from a friend. They currently have a Loan with a house that they own(no mortage,etc) as collateral. They would like me to take over the Loan in exchange for the property, i.e. I pay ...
2 votes
4 answers
71k views

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 ...
46 votes
4 answers
11k views

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 ...
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4 votes
2 answers
230 views

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 ...
3 votes
4 answers
510 views

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 ...
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1 vote
2 answers
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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?
1 vote
1 answer
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Credit influence of transferring debt to new account

I understand that the age of my accounts has an impact on my credit score. My oldest account, by a wide margin, is my federal student loan. I'm hoping to minimize my payments in size and/or how long I ...
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-4 votes
2 answers
2k views

Can I use myself as collateral?

I want a big loan and decided I have nothing of tangible worth to support repayment, so I was wondering if I could put myself up (literally) as collateral. I suppose this could be understood as me ...
4 votes
2 answers
9k views

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) ...
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1 vote
1 answer
1k views

Using a current house as collateral for a loan to buy another house

If my name is on the deed of one house (the deed only, not the current mortgage on the house), can I use the house as collateral to obtain another loan for another house?
16 votes
4 answers
144k views

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. ...
3 votes
2 answers
1k views

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/...
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2 votes
4 answers
9k views

Can a friend put up collateral for my secured loan?

I'm the friend. My mom needs a loan from me and figures involving a bank might avoid some headaches. She wants me to lend her 20K. Wire it to the bank. Then the bank will (presumably) lend her 20K. Do ...
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