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?

Do you take collateral if they default?

Description Debit Credit Purchase price 89500.00 Deposit (Earnest Money) 1000.00 Loan Amount 85900.00 *Other property as collateral Prorated 2018 Taxes 559.66 Title Charges Closing Protection Letter 12.50 Comp Endorsement 12.50 EPA Endorsement 12.50 Lenders Title Ins 487.50 Owners Title Ins 182.75 Recording of Deed 16.00 Escrow Closing Fee 50.00 Termite Inspection 85.60 Totals 86759.35 87459.66 Check to me at Closing 700.31 This was a bit of a special one since I was using collateral, but when I’ve put 20% down I was seeing roughly the same results, with the exception of needing to cut them a check for the 20%.I would be looking for a new bank and title company.

I could give you horror stories of ways that these teams fouled up their own margins by recording the wrong rights with the wrong legal descriptions... or by taking all their rights, getting a giant cross-collateralized Mortgage across them all (over 300 assets!)

If you look at it from the lender's perspective, you'll see why this matters so much to them: They loaned you a large sum of money, and you pledged your property as collateral for the loan.

For these reasons (primarily the second one), two banks and a mortgage broker have not been able to work with us (due to their own  internal rules, not legal ones).The houses provide good collateral, and we can provide proof of employment and income, so I feel like this shouldn't be impossible. 

Could you please recommend a lender that you know does loans or lines of credit on private stock collateral?

It means that the insurance company is loaning you "Their" money and the collateral is "Your" money.