questions about 2 types of collateral

[anderl]

Before I consider putting up a loan request I wanted to know how some collateral would be valued when asking for a loan.  Basically I'm asking would it be worth asking for a certain sized BTC loan if I put up one of these two properties in escrow.

a Steam account with a $24600 valuation.
a car title for a dodge charger srt-8 blue book valued ad VG condition for $13680

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[jacee]

To answer your question:

What is considered collateral?

Collateral is something that can easily be resold to cover the loan value plus interest should the loaner default on the loan.

- The best collateral is another crypto-currency, such as Litecoin (also written as LTC).  Coins must be moderately traded on multiple exchanges.
- Some digital wares such as domain names can be considered as long as the user cannot recover it.
- Small valuable items that can be shipped though the mail - i.e. gold, silver, iphones, etc.
- Large items, such as a motorcycle or guitar can be used if you live close to the person giving you the loan.  Try localbitcoins.com

What is not considered collateral?

- Items they want to sell.  They don't want it back, so they will default.  It's scammy unethical behavior and will lead to negative trust.  Check their recent posts!
- Items not in hand.  Don't trust a user that promises to give you something *when* they default!  Tracking numbers only show something has been mailed - it could be an empty box.
- Future income.  You can prove you'll make xx coins in the next few days, but nothing forces you to send those coins to pay your debt.
- Identification.  So what if they can prove who they are.  Are you going to spend more money and time taking them to court on untested legal grounds?  You'll probably just walk away, like everyone does.  ID is useless.
- Games codes or similar.  To verify the collateral you need to use the code, which destroys the collateral.  Consider this a purchase, not a loan.  (Post in Digital Goods instead)
- Most new alt-coins or alt-coins that trade for satoshis are not good collateral as they can become worthless overnight.
- Paypal should never be used - they are anti-bitcoin and will rule against you 100% of the time.  Escrow can't even help, as paypal charge backs can come over 6 months later!
- Most valuable online accounts can easily be recovered by social engineering (the user contacting support to say they were hacked, and regain control of the account)  Examples:  Steam
 

It really depends if you can find a lender here who is willing to accept the collateral that you are offering.

[anderl]

thanks jacee that helps

[Vod]

thanks jacee that helps

Wish I got a payback every time that post was quoted!  lol

[Decoded]

Why don't you try BtcJam? They're more inclined to give larger loans like this. Depending on the loaner, they might accept your collateral.

thanks jacee that helps

Wish I got a payback every time that post was quoted!  lol

Don't get it.

[Patatas]

Don't get it.

You would,if you cared to read the entire thread.Basically,Jacee linked that dude to the collateral terms which are posted by VOD a very long time ago.Since it has a wonderful explanation on what a actual collateral is,every time a discussion about collateral comes out in the lending section,the post from VOD is quoted in the post.And hence VOD's current post,wish he'd get a payback every time that post was quoted.He would be rich!

[Doamader]

I doubt someone here will fund this loan with such collateral, first because you are not saying the ammount you willing to ask, and second because a game account isnt something easy to sell, but maybe the right person can sell it, i know you dont wanna scam or atleast isnt your main thinking, but the lender has to have sure he can sell those things, soo maybe btcjam can be the best option for you, but i doubt they will accept those colateral, usually they lend to people who can proof their income.

[The Sceptical Chymist]

I've been either lurking on, or posting on, or watching the lending section for about two years now, and I think I've seen physical collateral used maybe twice.  It's just such a pain in the ass to do something like that over the internet--it's possible, but it's definitely not very practical, especially when an escrow is involved.  And I'm sure large loans like this get filled, but that's another rarity too.  But OP, good luck trying to get your loan. 

[knightkon]

I can fund a loan for you, but the question is how much of a loan are you looking for and what are the interest terms.  Also, where are you located?  Once you get this general information to me, I will let you know if there is anything I can do to help you.

[anderl]

I can fund a loan for you, but the question is how much of a loan are you looking for and what are the interest terms.  Also, where are you located?  Once you get this general information to me, I will let you know if there is anything I can do to help you.

Hi knightkon,  Thanks for the offer.  I'm in the US and the loan I'm looking for is for around 12 BTC to pay for the remaining cost of renovating a house and put it back on the market.  I decided to make a loan request on bitbond.com and see if that works.  It's a terribly high interest rate but as per the Realtor she expects that the house will close on quickly.  The only problem is that it is going to take 11 more days before I realize if the loan will be funded or not.

If you are still interested we can discuss take this over PM. The bitbond listing is 3ESZ978A05. I'd be willing to cancel the bitbond listing for a faster turn around time if I offer up collateral.

[anderl]

I doubt someone here will fund this loan with such collateral, first because you are not saying the ammount you willing to ask, and second because a game account isnt something easy to sell, but maybe the right person can sell it, i know you dont wanna scam or atleast isnt your main thinking, but the lender has to have sure he can sell those things, soo maybe btcjam can be the best option for you, but i doubt they will accept those colateral, usually they lend to people who can proof their income.

Thanks.  I didn't realize that the game accounts can be reverted so easily.  So I guess that might not be good collateral then.  I didn't want to put too much detail into the loan offer because I noticed in some threads that even asking for a loan incorrectly results in negative rating.  So this was mostly just a question before putting up a request.

Btcjam has recently change their terms and does not offer loans or accepted investors from the US which is where I live so that is not an option anymore.  Thanks to the regulatory nightmare that is going on here it seems that it is scaring businesses like btcjam away.

[knightkon]

I can fund a loan for you, but the question is how much of a loan are you looking for and what are the interest terms.  Also, where are you located?  Once you get this general information to me, I will let you know if there is anything I can do to help you.

Hi knightkon,  Thanks for the offer.  I'm in the US and the loan I'm looking for is for around 12 BTC to pay for the remaining cost of renovating a house and put it back on the market.  I decided to make a loan request on bitbond.com and see if that works.  It's a terribly high interest rate but as per the Realtor she expects that the house will close on quickly.  The only problem is that it is going to take 11 more days before I realize if the loan will be funded or not.

If you are still interested we can discuss take this over PM. The bitbond listing is 3ESZ978A05. I'd be willing to cancel the bitbond listing for a faster turn around time if I offer up collateral.

Please reach out to me through PM and we can discuss this loan.  The Steam account has no value to me, however I will hold the vehicle title for collateral against the loan.  PM me with the interest you are looking to pay along along with the terms of the loan and where the vehicle is garaged at.  I will wait to hear from you to see if we can work something out.

[beerlover]

I think steam accounts some users tend to accept while some have negative view points towards it. You just need to make sure whom you are asking for loan, if he accepts your collateral then it does not matter what the audience think and say because its between you and lender.

[Decoded]

The steam account would be valued below quicksell price. So maybe 60% of evaluation.

The car... Not totally sure.

Don't get it.

You would,if you cared to read the entire thread.Basically,Jacee linked that dude to the collateral terms which are posted by VOD a very long time ago.Since it has a wonderful explanation on what a actual collateral is,every time a discussion about collateral comes out in the lending section,the post from VOD is quoted in the post.And hence VOD's current post,wish he'd get a payback every time that post was quoted.He would be rich!

The thing is, I did read the thread, just was half asleep. If you think I was spamming, "Don't get it" has less than 75 characters; I didn't get paid.