(a) A real estate broker within the meaning of this partis also a person who engages as a principal in the business of makingloans or buying from, selling to, or exchanging with the public,real property sales contracts or promissory notes secured directly orcollaterally by liens on real property, or who makes agreements withthe public for the collection of payments or for the performance ofservices in connection with real property sales contracts orpromissory notes secured directly or collaterally by liens on realproperty.

I don't know how I missed this thread, but I'm glad I found it today.Mike, I'm curious about 2 things: 1) what you ended up doing, and 2) why you didn't consider simply using the equity in that property as cross-collateral for other deals.

(iv) Privilege is reserved and Borrower may, at any time, substitute for the collateral that is security for this NOTE secured by a Deed of Trust.

The question is; is the collateral well worth the risk of the loan.

Hi, absolutely yes. 6 years from now if rates are 9% and you are in at 4.25%, if that servicer or note holder finds that you have conveyed an ownership interest in or to the collateral security, they will most likely act in their best interest and let you know to pay it off!

The seller is not entitled to collect proceeds and apply amounts to the loan as the first mortagee is, funds must go to the rebuilding/repair of the collateral in such transactions.

Originally posted by Michael Quarles:...1) Does the note have a Due of Sale clause....In Seller Financing (where you are the buyer), you don't really want a "Due on sale" clause, but you might want to have a "substitution of collateral" clause in case you sell but really like those loan terms ...

HELOCs are significantly cheaper (simple interest) for the consumer making it less risk for both the consumer and the bank (assuming the consumer is well qualified, not everyone can do this) and the bank still backs up the line using the house as collateral.

(Do a Google search for "piercing the corporate veil")The mortgage is a debt instrument secured by collateral (the property) to ensure that the bank is paid.

What collateral documents to request. 10.