They will absolutely want personal guarantees, recourse, any cross collateralization etc.Local banks have auditors on them to do ultra cautious underwriting with maximum security from the borrower.

From that along with the 50% rule you can get an initial thought as to following through with it and later after the appraisal, fine tune your collateral decission (or holdings).Just as J mentioned it's usable at first glance.

- The equivalent amount of your own funds get put in escrow as collateral in a stable value/cash equivalent option.- You make payments back at an agreed upon interest rate.

My voted us thumbs down, although the OP seemed to want to get yes rather than the unanimous no's he received.Here's my take: additional non-cash collateral might make up for deficient security deposit, but that's it.

Their only remedy is to foreclosure on the property and take it as collateral for their lien.

Is the property or market a problem with respect to the LTV and the note needs to be reduced to reflect a collateral issue?

And now you're advocating we wait for them to do it again as opposed to just blowing up them all up...who cares if it means some collateral damage?

In some states filing doesn't seem to be required however Steven has given IRS code as it being a requirement I believe, so the extent of a vested security interest, the collateral being at steak in your installment agreement may get past muster.I also suggest these issues be agreed in your agreement so there is no confusion. :)

She agreed.In the offer I said the $5000 I would get back at escrow would be used to fix up her run down duplex and make the collateral for her $40000 loan nicer and worth more.Deal closed as above.Very important to know that YOU CAN DO DOWN DEALS, BUT MOST OF THE TIME THEY HAVE NEGATIVE CASH FLOW because of large mortgages.I knew this would work, because the 2 bedroom unit upstairs was $125 less than market value and the 3 bedroom down stairs was $200 below market rent.Why did the lady say yes?  

What about using the property as collateral for a line of credit?