Phoenix Bail Bonds for Real Estate

Posted by on Jul 24, 2013 in Bail Bond Collateral, Phoenix Bail Bonds

Phoenix Bail Bonds for Real Estate

Using Real Estate for Collateral

Real Estate is commonly used to secure bail bonds in Phoenix when the bonds are usually over $10,000.00, although when nothing else is available we have had clients use real estate to collateralize bonds as small as $2,000.00.  Technically, we could use real estate for any size bond, but because of the work involved in property research, determining value, and recording, real estate for small bonds is not practical.

The process of determining the suitability of property for collateral on a bond is straight forward.  The client provides us with:

  1. Owners name
  2. Property address
  3. Tax assessor’s number or parcel identification number

Other substantiating data like recent appraisal, copy of Deed, legal description, and latest mortgage balance statement may be required.

Once the client has provided the bail bond agent with the basic information, the bail bondsman will order a property report from our Surety or Title Company.  Maricopa County Bail Bonds then carefully reviews the report for several key items.

    1. Today’s discounted market value of the property (discounted for a potential rapid sale)

    a. Location of property

    b. desirability of property

    c. comparable sales

           2. Outstanding liens

  1. a. number of open mortgages

    b. unpaid taxes

    c. personal liens that may affect the property

Once the review process is complete, we simply subtract outstanding liens from the discounted market value to come up with available equity.  If there is enough equity, we write the bond and have the client record the Deed of Trust or Mortgage at the County Recorder’s Office where the property is located.

Sometimes it’s Not So Easy

Occasionally, we hit snags with the evaluation of the property.  Sometimes there are discrepancies of who the legal owner is.  For example, many people use Quit Claim Deeds to switch ownership.  Quit Claim Deeds must be recorded and they only convey the rights that the prior owner had to the property.

Sometimes the owner has died and left the property to his family.  In order for the family to use the property for a bail bond, they must have recorded the legal conveyance of the deceased to the survivors.

Sometimes there are property tax liens, State/Federal income tax liens or child support liens that the property owner is not fully aware of that prevents the property from being used.

and

Sometimes the property is upside down.  This term refers to the mortgage or lien being higher than the value of the property.  In other words there is too much debt against the property to secure any size bond.

Maricopa County Bail Bonds is happy to evaluate the suitability of your property for any size bond.  Be aware that any evaluation takes time, so if you don’t have the time to spare, consider buying your bond with cash or credit card.

Maricopa County Bail Bonds

(602) 258-4488

Get Out Now!

 

Copyright

© Copyright 2013, Maricopa County Bail Bonds. All rights reserved.

All materials, content and forms contained on this website are the intellectual property of Maricopa County Bail Bonds and may not be copied, reproduced, distributed or displayed without Maricopa County Bail Bonds’ express written permission.

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Phoenix Signature Bonds

Posted by on Jul 17, 2013 in Bail Bond Collateral, Phoenix Bail Bonds

Phoenix Signature Bonds

Signature Bail Bonds

We are asked nearly every day by potential clients if we do Signature Bail Bonds.  Signature Bail Bonds are bail bonds that are backed by the good word or signature of the Indemnitor (also known as co-signer) on the bond.  No collateral is taken for security because it is presumed that the co-signer’s ability to stand behind the bond and cover any loss is without question.

Signature bail bonds had their start back in the day when most people were gainfully employed and grew up and worked in the same community their family had lived in for years.  Back then a hand shake on a business deal was all that was necessary.  Everyone knew one another and people lived or died by their reputation alone.

A lot has happened to the United States since those days.  People are more transient in nature and it is rare to find a person’s roots tied to a single community for more than a few years, let alone generations.  Unemployment rates are still high from recession and in 2012, 46,700,000 Americans were on food stamps.

Phoenix Bail bond companies  have observed, over the last seven years, that the clients with suitable collateral to secure a bond has diminished with the passing of every year.  Our day is spent analyzing the value of collateral hoping and praying that we can put Phoenix bail bonds together for our clients without having to absorb all of the risk.

Do you Qualify?

Some of the more daring Phoenix bail bond companies are advertising that they will or can do Signature Bail Bonds.  Some of their requirements are:

  1. Stable Job with proof of income
  2. Utility bill for proof of residency
  3. Good credit history
  4. Defendant has little or no failure to appears
  5. 10% of the bond amount in cash or credit/debit card

Another company indicates that they can do signature bonds for some clients, but will charge a 40-50% non-refundable risk premium and/or place the defendant on a GPS ankle monitor.  This company posts the bond in cash.

In any event, if you look over the above requirements, there appears to be little benefit in asking for a Signature Bail Bond.  You are either going to have someone prying into your financial history or charging you an exorbitant fee to take on the added risk of a bail bond without collateral.

Look out for Nervous Bail Bondsman

Phoenix bail bondsmen that have taken little to no security on a bond are bound to be nervous about their investment.  We have heard a number of stories about bail bonds getting revoked due to non-compliance with conditions of release, or failure of a client to make the agreed upon payments.  Getting re-arrested for non-compliance and having your bond surrendered back to the Court means you just wasted all your money and time.  If you plan on playing with fire, do some research on the company you’re working with.

Maricopa County Bail Bond Advice

Our advice is to do a bail bond the right way, put up the required collateral and pay the nominal 10% fee.  If you can’t afford a bond, don’t do it.  Don’t fall into the trap of over-extending yourself.  The consequences of not paying a bondsman or not complying with his conditions of release will land you back in jail.  It’s not like  failing to make a credit card payment, or missing rent for a couple of days; bail bond companies with high risk exposure will pull the plug on you.

 

 

Copyright

© Copyright 2012, Maricopa County Bail Bonds. All rights reserved.

All materials, content and forms contained on this website are the intellectual property of Maricopa County Bail Bonds and may not be copied, reproduced, distributed or displayed without Maricopa County Bail Bonds’ express written permission

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Bail Bond Collateral

Posted by on Dec 6, 2012 in Bail Bond Collateral

Bail Bond Collateral

What is Bail Bond Collateral?

     Bail Bond collateral is some sort of tangible property (cars, house, jewelry, artwork, cash) that you use to secure a bail bond.  Collateral takes the place of money.  When you need to bail someone out of jail, you may not have the cash available to post the bond yourself.  A bail bondsman, however, is willing to accept property in lieu of cash and charges you a 10% fee for doing the bond.  The fee is non-refundable, however, the collateral is fully returned to you as long as the defendant goes to every one of his hearings until the case has been adjudicated (completed).

For example: Your brother George has been given a $2,500 bond.  You don’t have $2,500 in cash to give the court, but you do have a 2005 Dodge 4×4 that is worth at least that, however, you don’t want to sell your truck.  A Phoenix bail bonds company would place a lien on your title and charge you a $250 fee.  When the case is over you get your title back.  You haven’t had to sell your truck, and you are only out of pocket $250.  You have maximized your leverage.

 

What can be used as collateral?

     Any asset that the bondsman is willing to accept may be used as collateral.  Typically, cars truck, buses, motor homes, mobile homes, horse trailers, jewelry, artwork by well known artists, electronics, tools, real estate, land, houses, gold, silver, antiques, etc.  Be aware, most bondsmen are going to value your assets conservatively; this means wholesale valuation methods will be applied to your assets. Remember, the idea of collateral is to cover the loss of the bond.  Collateral would be sold quickly to cover loss.  Used car lots, pawn shops, and junk dealers are favorite receivers of much of the property.  Do not get your feeling hurt if  the the bondsman does not value your property as high as you do.  This is business, not charity.

 

Can I lose my collateral?

     When a default in the bond has occurred and the Court has ordered the bond Forfeited, a judgement is isuued and the bail bond company is required to remit to the Court the entire forfeited amount.  The bail bond company will require you to do one of the following: pay the forfeited amount in cash; if the debt is paid in full, the bail bond company should return your collateral immediately.  If you can’t pay the full forfeited amount, the bail bond company will be forced to sell your property.  If the bondsman sells your collateral and has not received the required amount to cover his loss, you will be personally liable for the deficit.  Any cash received in excess of the amount necessary to cover his loss will be returned to you.

 For more information on collateral or the bail bond process, please call us at (602) 258-4488 

 

 

 Copyright

© Copyright 2012, Maricopa County Bail Bonds. All rights reserved.

All materials, content and forms contained on this website are the intellectual property of Maricopa County Bail Bonds and may not be copied, reproduced, distributed or displayed without Maricopa County Bail Bonds’ express written permission.

Read More »