Sometimes, a borrower does not have enough down payment to make the private lender feel comfortable enough to approve the loan. In these instances, adding another property with strong equity is an ideal solution! Cross collateralization is a method used by lenders to add more security to a loan transaction. It is accomplished by the lender placing a lien on another property in addition to the property that is the subject of the loan.
The lien may be a second or third deed of Trust, but it can often be the difference in an approval versus a rejection, as well as a better interest rate. If there are several properties tied up in the loan to make the equity position strong enough, we offer structured lien releases, so that the borrower can sell or refinance one or more of the properties during the loan, and have a portion buy down the principal, subject to the loan to value ratios and agreements.
At Cushner Capital Group, we specialize in finding solutions. Banks have their guidelines, but not all borrowers are equal. If you have strong equity in one or even several properties in California, but do not fit into the bank’s somewhat narrow guidelines, please call us – (760) 845-9035. We have investors seeking make sense deals collateralized by California real estate.
