Can You Pawn Your House – ANSWERED! in 2017

Brian McCracken


Is it even possible to pawn a house? A pawnbroker answers your question here!
Of all of the things that I’m asked in pawn shops, there are a few questions that come up all the time.
How long are pawn loans good for?
Can you pawn the same thing twice?
Are pawn shops rip offs?
But once question that I’m not asked all that frequently is “Can you pawn your house?”
I’m not sure why, but that just never seems to come up.
I guess one reason could be that most people see pawn loans as short term loans on small items that pawn shops can store.
For the most part, they are just that! In fact, in many states there are laws in place dictating how pawn shops have to hold onto and store the items that they have loaned against and since you can’t really store a house in a pawn shop – it pretty much rules it out.
However, in other states, there are no such laws governing how pawn shops have to store things. Or, if there are, there are exceptions that can be used, such a written permission from the owner.
I know, it sounds funny, but in some states, if you decided that you wanted to make a pawn loan on your house, you would have to give the pawnbroker a note saying that it’s okay that they not store your house in their pawn shop.
I’ve never actually seen such a letter, but it is certainly one way to work around those loans in the event this was a real thing.
A lot of people hit hard times, but some go as far as to pawn their house, or at least think about it. The truth of the matter is that there is no reason that you couldn’t pawn your house unless it was technically illegal where you live.
Why Would Someone Make A Pawn Loan On A House
Well, a lot of reasons actually.
When you make loans at banks, they require good credit, a certain level of income, so on and so forth.
Pawn shops however just make you a loan against the collateral, and don’t really care about your credit score or income.
Furthermore, banks don’t really specialize in low dollar loans. They aren’t interested in making a loan for $2,000 in most cases.
Pawn shops however make loans this size all of the time! That’s what they are there for.
What Are Some Things You Should Do When Making A Loan On Your House
if you are serious about pawning your house, then there are some things that you should be prepared for.
First of all, you are likely going to have to demonstrate that the house is yours, free and clear.
A pawn shop probably won’t be interested in pawning your house if you have other loans on it or there are other people’s names on the title for it.
So, getting this together upfront would be a good idea.
The second thing that you should do is call a bunch of pawn shops, and don’t stay just in your local area.
On a pawn loan this size, you may find a lot of pawn shops pass on the overall idea, but there are also going to be plenty that might give it some real serious consideration. Particularly if the house is in a good area and in good condition.
So, I would go as far as 150-200 miles out and call all of the pawn shops in that radius. Yes, I know that means you will be on the phone for a few hours, but you are talking about pawning your house! Make the time commitment and do it right!
Once you’ve compiled a list of interested pawn shops, it’s time to schedule visits, inspections and see who will give you the best deal.
What Is The Best Deal For Pawning A House
With a loan this size, you don’t want to just look at the amount of money that they are willing to lend you.
That is of course one major consideration, but you also want to find out if there are any pawn shops out there that will negotiate on the interest rate with you as well.
After all, with a loan this size, it’s not unreasonable to ask and just see who bites on the idea of cutting you a deal just to get the loan instead of other pawn brokers.
You could end up saving yourself a lot of money by shopping around for the best overall repayment terms, so put the work in and do it!