Posted by colvegas on January 21, 2006 at 22:46:37:
I would think you would both sign the form. A nice way to secure your lenders interest and protect both of you regarding your property is to vest your property into a land trust and then assigning a % of beneficial interest to your private lender equal to the amount of the lien on the property. AS to the substitution of collateral you can substitute your private lender as a beneficiary to whichever property you are using to do this. YOu lender upon realizing the trust is a legal entitly that is legally structured properly will actually better secure his interest in the trust that owns the property you both as beneficiaries would control it. YOu also avoid a due on sale trigger under the Garn St germain act of 1982.
Doing it through a trust takes the lien out of the picture which acutally clouds your title. since liens can not attach in the land trust.If it is a asset based lien or a lien secured by the propertybe careful since if you do not pay or have problems he can foreclose and in some cases take the whole enchilada… I had a lien on a property to pay a hard money and if I did not pay the private money lender could foreclose and take my whole house!!!
Let me know how i can assist you my email is colvegas07@hotmail.com