collateralize existing personal, non-secured loan…how to. - Posted by MilNC
Posted by MilNC on June 07, 2000 at 15:53:49:
Suppose a person has a low interest unsecured note, that they owe, to a family member, and wants to acquire real estate and use it to secure this existing note, after the fact. No banks involved, If any secondary market would be involved, it could be re-structured. (actually, it has not been written yet).
Does one deed the property to note holder/family member…they can sell the property and take back a note from the
buyer for higher interest rate? Or, somehow attach note to property with no sale?
If he then buys, then sells with his own owner financing, then how does he transfer that to the family member that he owes the low int. rate unsecured note/money to?
Approximate amount of proposed unsecured loan: 50K
Protect the estate in case the borrower, dies;
Preserve Family tranquility
Protect lender (family member).
Any suggestions would be appreciated. Maybe I need to go to
the note group on this site with this.