What Happens When You Use Your Home As Collateral For A Bail Bond?
Posted on: 10 July 2020
When you have a loved one in jail, the natural reaction for most people is to bail them out as fast as possible. In many areas, the court system operates very slowly — defendants may be in jail for a very long time while they await trial. Being in jail quickly puts their employment or education at risk. If they have children, they won't be able to take care of them.
Unfortunately, the price of bail is often very high, and few people have the cash on hand to pay the full bail to the court. Bail bonds help people in this situation by posting the full amount of bail in exchange for a fee — this fee is usually around 10% of the bail amount, and it's referred to as a premium.
However, bail bond agencies take on a significant amount of risk when they post bail for defendants. If the defendant stops attending court dates, the bail bond agency is required to pay the full amount of the bail. In order to mitigate this risk, agencies often require people to use collateral to guarantee the bail. Many people seeking bonds use their homes as collateral. To find out how this process works, read on.
How Do You Put Your Home Up for a Bail Bond?
When your bail bond agent determines that you'll need to put your home up as collateral for a bond, you'll need to file a deed of trust with your county courthouse. This is a simple form that declares your intent to use your home as collateral for bail, and your agent will provide it to you.
You'll usually need to go to the county courthouse in person to file the form. Once you've filed it, you'll return to your agent with proof that the courthouse has received the form. Afterward, they'll file a lien against your home. You'll still be able to live in your home normally during this time.
What Happens to Your Home if the Defendant Doesn't Show Up for Court?
When a defendant misses a court date, most county court systems will allow for a grace period before they demand the full amount of the bail. This gives the bond agency time to find the defendant and return them to the court system.
If the defendant can't be found, the court system will demand that the bond be paid in full, and the bond agency is responsible for it. If you have enough money available to pay the full amount, you can decide to pay it now. Otherwise, the bond agency will be forced to pay. In order to recoup the amount of the bond, the agency (or their insurance company) will foreclose on your home and sell it. As a consequence, you'll immediately lose possession of your home.
Thankfully, most defendants show up for their court dates and the process goes smoothly. If you're asked to put up your home as collateral for a bail bond, however, you face quite a bit of risk. Make sure that the defendant is trustworthy and capable of meeting their court dates — if they decide to flee and can't be retrieved, you'll lose your home.
For more information, contact a company like Abel Bail Bonds.
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