Can an Assignment secure a promissory note? - Posted by DavidGOR

Posted by John Merchant on July 13, 2007 at 22:14:13:

A written contract can, if it’s legally assignable (or if it’s not specifically forbidden by language of the written contract or your state law) be assigned to a lender as collateral for a loan/note.

I’d want a lawyer to do this CA so as to make sure the Assigning party has the right to assign it and that it’s done right and you could then do a Forfeiture of REC filing if you needed to.

I just realized that you didn’t say which party, the Seller or Buyer, wanted to assign his contract but probably either could assign his rights under the REC and either one might be equally good security for your loan.

Can an Assignment secure a promissory note? - Posted by DavidGOR

Posted by DavidGOR on July 11, 2007 at 09:57:39:

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 to an assignment of the Land Sale Contract? (I’d keep the assignment in escrow.)

If not, if there a 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