Persona Loan Using Land Collateral
|Posted by: Criss Jul 23 2004, 04:31 PM
I have 8 acres of property that is completely paid off and I hold the deed to it. The property is worth $62,000. I want to take out a loan on the property or a persoanl loan using it as collateral. I cannot seem to find a bank anywhere that is willing to help. Does anyone have any suggestions?
|Posted by: loanuniverse Jul 23 2004, 05:58 PM
|We are talking here about a consumer loan, which is something that I don’t have much experience on. If I had to guess, I would say that the small amount of the loan and the fact that this is land will make it complicated to get.
When you say, that you can’t seem to find a bank that is willing to help, exactly how many have you visited? For most people, I would say give a call or visit a couple of banks. In your case, you need to visit in person. The reason behind this is that most lenders do not deal with undeveloped land, and the size of the loan will not wet their appetite enough to try to learn how to. By going in person, you will get a chance to explain your situation to the lender in person and they will have to deal with you.
Now this being a consumer loan, the repayment will be your personal income. This means that your wages must be enough to meet the payments. Your credit will also be important so you should get a credit report. It is always a good idea to check your credit report from time to time so spend the $10 and get one. The amount of the money that you can borrow could be as low as 50% of the value, and I hope you won’t have to pay for an appraisal, but that is also a possibility.
Go talk to a couple of people in person, worse thing they can do is say no.