Ok, a mortgage is secured by the property being collateral.

Usually happens when someone assigns the house as collateral to pay medical bills, etc.  

However you may still be responsible for UBIT.The second option, if the other person is not a “disqualified person” is to let the third party borrow the money from you and a traditional bank using the timber/contract as collateral-this may also avoid UBIT.

Brandon, Assuming you did the loan using house as collateral, and used an attorney / title company to do all proper paperwork at the outset - i'd call that attorney or title company as first step.

As long as you are a solid citizen, they lenders dont' really care about your ability to repay like a traditional mortgage. the other advantage is, as long as its through a entity, when you cross collateralize, you get into a commercial loan and you reset your ability to borrow using fannie and freddie money.

To cover this time period, you need a deed of trust/mortgage to secure the collateral as well as hazard insurance.If both AB and BC close with the same title company, you contractually bind the title company to not close and record the AB until the title company is in receipt of 100% of the funds required for BC to close and agree to close BC immediately after, on the same day as, the AB close.

They're making 10% on their money and it's backed up by real collateral.

After a little seasoning sell the 1st at par and hold the 2nd in an IRA or for future use as collateral for a private loan.

I think the people who got burned last time primarily had cross collateralized properties, over leveraged and/or had low cash reserves.

Collateral in the form of liens ?