What is bail bond collateral? Bail bond collateral is defined as tangible property that has value including cars, jewelry, artwork and residential homes that can be used to secure a bail bond. Collateral takes the place of cash. When you need to bail a loved one or friend out of jail, you may not have the cash readily available to post the bond yourself. A bail bondsman may be willing to accept property in place of cash with a fee, generally 10% for agreeing to do the bond. While the fee is non-refundable, the collateral is returned to you providing the defendant appears at court until the case has been adjudicated.
What Can Be Used as Collateral for Bail Bonds
It depends on the bondsman and which items he/she is willing to accept. The most common items accepted include cars, trucks, buses, motor homes, trailers, mobile homes, jewelry, electronics, tools, land, houses, gold, silver, and antiques. One of the most important things that you need to understand is that the bondsmen will value your assets conservatively using a wholesale based valuation system. The item used as collateral is expected to cover the loss of the bond and recover the loss quickly should the defendant fail to appear in court. It is to be expected that the bondsman will not place as much value on the property as you do.
Putting House Up as Collateral for Bail
The most widely accepted form of bail bond collateral is in the form of property. If the item you are offering is large property such as a house or car, the court or bail agent will have you place the deed in their trust. Smaller items including jewelry will be kept in the physical possession of the bail agent until the case has been resolved. Should the court be collecting on a bail bond that is property based because the defendant failure to appear in court, it usually involves the seizure and sale of the home or other property. Property bail can take many weeks to collect upon. Equity must be determined to equal at least 150% of what is owed to the court.
Your collateral will be returned to you once the case has been completed, whether the person is found innocent or if the person is sentenced. However the full amount of the collateral may not be returned if a premium has been set in place as part of the bail bond agencies contractual agreement. Bail collateral can be returned in as little as five days after the financial obligations have been completed. Until these obligations are met, the bail bond again will continue to hold the bail as collateral.