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  • Official comment
    Stilt Team

    It is highly unlikely that bank and lenders will consider an international property for a loan in the U.S.

    The major reason for that is legal paperwork, compliance, regulations, and the extreme difficultly in foreclosing if a property goes in default.

    All banks maintain a separate balance for their subsidiaries in each country and they can’t hold a property and give a loan in another country.

    Lets take an example of a bank lending you money in the U.S. based on your property in India:

    • If they give you the money in US, then essentially they don’t have anything against which they can hold the property in India.
    • If you default in the U.S., they don’t have anything against you in the U.S. to recoup their money
    • If they go back to India to foreclose, of which costs are very high, they also won’t have any claim based on the lending agreement you sign in the U.S.
    • If you sign an agreement in India, then they can’t give you money in the U.S.

    These are just few of the issues that a bank has to deal with when considering lending based on international property. There are many more regulations around Bank Secrecy Act and Anti Money Laundering practices they’ll have to deal with.

    All these legal, compliance, and regulatory problems make it difficult for banks in the U.S. to give a loan with a property in another country as collateral.

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