Cross Collateralizing A Hard Money Loan
In some cases, the low loan-to-values do not facilitate a loan sufficient to pay off the existing mortgage lender, in order for the hard money lender to be in first lien position. Because a security interest in the property is the basis of making a hard money loan, the lender usually always requires first lien position of the property. As an alternative to a potential shortage of equity beneath the minimum lender Loan To Value guidelines, many hard money lender programs will allow a "Cross Lien" on another of the borrowers properties. The cross collateralization of more than one property on a hard money loan transaction, is also referred to as a "blanket mortgage". Not all homeowners have additional property to cross collateralize. Cross collateralizing or blanket loans are more frequently used with investors on Commercial Hard Money Loan programs.
Read more about this topic: Hard Money Loan
Famous quotes containing the words cross, hard, money and/or loan:
“All pathways by His feet are worn,
His strong heart stirs the ever-beating sea;
His crown of thorns is twined with every thorn;
His cross is every tree.”
—Joseph Mary Plunkett (1887–1916)
“It is a good lesson—though it may often be a hard one—for a man who has dreamed of literary fame, and of making for himself a rank among the world’s dignitaries by such means, to step aside out of the narrow circle in which his claims are recognized, and to find how utterly devoid of all significance, beyond that circle, is all that he achieves, and all he aims at.”
—Nathaniel Hawthorne (1804–1864)
“Those things for which the most money is demanded are never the things which the student most wants. Tuition, for instance, is an important item in the term bill, while for the far more valuable education which he gets by associating with the most cultivated of his contemporaries no charge is made.”
—Henry David Thoreau (1817–1862)
“... the ... thing I am proudest of in my whole business life is that I do not take, that I never took in all my life, and never, never! will take, one single penny more than 6% on any loan or any contract.”
—Hetty Green (1834–1916)