How To Provide Collateral For A Bail Bond
Asked to provide collateral for an individual’s bail? Don’t know what collateral is? Wondering if you have anything that be considered collateral for bail and if you will ever receive it back? It is important to seek secure bail information from bail bondsmen.
If the court allows a property bond, one of the most common types of a criminal bail bond, it requires recording a lien on a property to secure the bail amount. If the defendant does not appear in court, the court can and may seize the property.
Simply put, collateral is something of value that is used to secure a debt or to ensure payment, referred to as a property bond. In terms of bail, this ensures that the accused will appear in court, as instructed by the Judge. There are two common forms of collateral, property (real estate, automobiles) and cash.
How do I use real estate as a property bond?
- Determine the value of your property.
- Determine the amount of the bond to be posted.
Remember that cash, automobiles and real estate are considered “property”. When using an automobile, make sure the bond is below the blue book value of the automobile. The use of cash and automobiles as collateral is extremely useful when dealing with low to moderate bonds.
Real estate, such as your home, can be used for moderate to high bonds. Keep in mind that you must have enough equity in the property to cover the amount of the bond. Equity means the difference between the home’s fair market value and the outstanding balance of all liens on the property. Simply, the value of your home isn’t affected by what you owe on the home. You may be required to have the deed to your property. The terms of a property bond vary from state to state.
What is the bail bondsman role with property bonds? For large bail amounts, bond agents can obtain security against the assets of the defendant or the individual willing to help the defendant. For example, the bond agent can charge cash along with taking a mortgage against the property for the full penal sum of the bond. Penal sum refers to the amount of money that the defendant or person signing the bond contract has to pay if the defendant fails to appear in court.
Does the court keep your property? If you use an automobile, the actual title is handed over to the court until the case is finished. If using real estate as collateral, you must have proof that you own the property. This proof can be given in the form of a deed. This creates a lien against your property until the case is finished. If the defendant becomes a’jumper’ there is a risk that your property will be seized by the court. This is extremely important when considering if you will use your property as collateral for bail.
Remember when you are using collateral as bail that you might lose your property if the defendant does not hold up their end of the bargain, which is showing up in court. This is a strong point to consider. Also, make sure to ask any questions about using collateral with a bail bonds agent. This will clear up any confusion and ensure that you make the right decision.
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