No one ever wants to stay in jail, especially a federal prison where the living conditions can be a bit less accommodating and you can be surrounded by people who have a range of issues. Even in federal jail, you may still be issued bail in certain circumstances, but the bail is often more. Using your property as collateral to get a bail bond is a common thing. Here is a look at some of the things you need to know about collateral and federal bail bonds.
The property must have a value that matches the bond amount.
In order to use property as collateral for a federal bail bond, the property itself must have a value that is greater than or equal to the amount of the bail. For instance, if the federal bail amount is $10,000, the collateral that you want to use will have to be valued at at least $10,000 or more. You can combine more than one piece of property in some cases. For instance, if you have to tracts of land that have a total value that matches your bond amount, you may be able to place both properties as collateral.
You may still be able to use property that has a lien.
If you have a piece of property that is still being paid for, you may assume that the property cannot be used as collateral for your bail bond. However, this is not always the case. It is possible for the bond agency to become the secondary lienholder on the property. However, there must be enough equity in the property to stand good for the amount of the bond. For example, if you own a home that is paid for 90-percent through the financing agency, you may have enough paid equity to use the property as collateral.
Not making your payments will put your property at risk.
Just as it is with any other lienholder, if you do not follow the terms of the bail bond, you could be at risk of losing the property. For instance, if you put your house up for collateral to get a federal bail bond and you do not make payments, the bonding agency could take ownership of your property through a simple court proceeding. It is for this reason that it is best to closely notate the terms of the arrangement before you commit with your collateral.