Alexandoy
VIP Contributor
The property or real estate is the best collateral for a bank loan that is why those who are in dire need of a loan would submit their home as the collateral. Our neighbor who was building an apartment that is a condominium style borrowed $200,000 from the bank for the completion of the structure. I don't know what happened along the way because after 2 years I learned that the property (which is the collateral) was forfeited by the bank. The forfeiture was due to unpaid installments for 6 months. The owner just shrugged his shoulder when I asked for details. Whatever the reason for not paying the installments, I believe that it was his fault. The building is still here, unfinished and remains idle for more than 5 years now. The bank is actually selling the property but there are no buyers. That is a neat lesson for us to be discerning when submitting the property for the collateral. When something bad happens to the finances you will lose your home and that would be devastating for the family.
When we bought our home via a mortgage we made sure that we could pay the monthly installments. Even if we had to scrimp on food expense we did it just to be able to pay the installments. Fortunately we now own our home.
When we bought our home via a mortgage we made sure that we could pay the monthly installments. Even if we had to scrimp on food expense we did it just to be able to pay the installments. Fortunately we now own our home.