.jpg)
Cross-collaterization
Yes. Trustee can sell one prop to free up equity in second prop.
D
Sent from my iPhone
> On Jan 12, 2017, at 12:54 PM, John Faucher j.d.faucher@sbcglobal.net [cdcbaa] wrote:
>
> Hello group:
> How does a trustee treat a loan cross-collateralized to two properties?
> Potential client has a homestead of $900,000 with a first mortgage of $650,000 and an SBA loan of $200,000, so no reachable equity. She also has a commercial property worth $200,000, with a deed of trust securing the same cross-collateralized SBA loan.
> Could or would the trustee sell the commercial property, netting no cash for the estate, in order to get to the equity in the homestead after the SBA is paid off?
> - John D. Faucher
> 818/889-8080
>
The post was migrated from Yahoo.
The trustee could stipulate with the secured creditor to allow them to
foreclose on the commercial property in return for a sum certain reduction
of the overall debt, and then proceed with sale of the other property. I
see that as the more likely scenario.
On Jan 12, 2017 12:54 PM, "John Faucher j.d.faucher@sbcglobal.net [cdcbaa]"
wrote:
>
>
> Hello group:
> How does a trustee treat a loan cross-collateralized to two properties?
> Potential client has a homestead of $900,000 with a first mortgage of
> $650,000 and an SBA loan of $200,000, so no reachable equity. She also has
> a commercial property worth $200,000, with a deed of trust securing the
> same cross-collateralized SBA loan.
> Could or would the trustee sell the commercial property, netting no cash
> for the estate, in order to get to the equity in the homestead after the
> SBA is paid off?
> - John D. Faucher
> 818/889-8080
>
>
The trustee could stipulate with the secured creditor to allow them to foreclose on the commercial property in return for a sum certain reduction of the overall debt, and then proceed with sale of the other property. I see that as the more likely scenario.On Jan 12, 2017 12:54 PM, "John Faucher j.d.faucher@sbcglobal.net [cdcbaa]" <cdcbaa@yahoogroups.com> wrote:
The post was migrated from Yahoo.
Hello group:
How does a trustee treat a loan cross-collateralized to two properties?50,000 and an SBA loan of $200,000, so no reachable equity. She also has a commercial property worth $200,000, with a deed of trust securing the same cross-collateralized SBA loan.Could or would the trustee sell the commercial property, netting no cash for the estate, in order to get to the equity in the homestead after the SBA is paid off?- John D. Faucher
The post was migrated from Yahoo.