They can put a lien on your property and primary residence for additional collateral if they feel necessary.

I am not wealthy and loaning him this money is a sacrifice for me, but I am more than willing to do it with his property as collateral even if I don't see the money again until 20 years from now.

I would like to purchase a primary residence in Los Angeles, and I'm considering either selling the Seattle home when the lease is up in a year, OR using the Seattle home as collateral to get a loan on a house in LA.

If the project is not completed in 12 months, you have the option to renegotiate the rate, foreclose on the collateral, or the borrower can go with someone else and pay you off with your interest.

You'll want to ensure you keep title clear and not mess up anything in the transfer which is why I asked if a deed of trust was officially recorded in the County so you will want to have a paper trail, even though the property will still be collateral for the loan.

The only caveat is that i have to have an equal amount in an account with them as collateral.

I will be able to cross collateralize with those after a 12 month holding period.Thanks for your help Tom. 

I am  wondering if there are any banks or hard money lenders in the MIlwaukee, Kenosha, Racine area that would do a cross collateral loan and if there fees and terms would be more economical than the traditional route.

Also, do you have a better chance qualifying for a second home mortgage if you put your first home as collateral with whatever equity you have in it?

Also, do you have a better chance qualifying for a second home mortgage if you put your first home as collateral with whatever equity you have in it?