Collateral question--NEED HELP PLEASE - Posted by M. Davis

Real Estate Investing
1

Posted by Dave T on May 27, 1999 at 19:21:08:

Do you already have an option agreement signed? If so, have your lawyer review the provisions of the agreement and explain it to your satisfaction.

I do not see enough information in your post to give a reasonable response. You may be giving away an equity share in your other property that is converted to cash when the property is sold. You may be giving a mortgage on your other property with periodic payment intervals, and release of lien is obtained when the final payment is made.

Have your attorney review the documents and advise you further.

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Collateral question–NEED HELP PLEASE - Posted by M. Davis

Posted by M. Davis on May 27, 1999 at 16:34:01:

I have an option to buy two townhomes with the owner taking collateral in another home for the downpayment. We will get our own loan for the remainder.

How does this work? How long before we should get a release of lien? When and how does she get her downpayment money back. Is she actually putting up the cash for the downpayment or is there really not a real downpayment in this case?

Need help please. Thanks.