Posted by John Merchant on July 27, 2007 at 19:27:18:
While legally you could secure a loan with an assignment on a REC*, as a practical matter I’d doubt that any institutional lender would accept such as collateral.
*Unless that REC contained a prohibition against such an assignment in which case it would not be legal.
Can an Assignment secure a promissory note? - Posted by DavidGOR
Posted by DavidGOR on July 11, 2007 at 10:00:43:
I know of a family that has a Land Sale Contract on a house.
If I make a loan to them, can I secure the promissory note with an assignment of the Land Sale Contract? (I’d keep the assignment in escrow.)
Or is there a better way to secure a promissory note on someone that has a Land Sale Contract? (The note would be for $30,000 and their ‘equity’ is about $100,000)
-DavidGOR