TheShortSaleHouse
02-08-2008, 01:18 AM
I have a good friend who had a property cross-collateralized to one that had both he and his aunt on title.
The hard money lender never had the aunt sign any documents stating that she was ok with this and he only had a single one page dosumnet signed by the other title holder on the property that was cross-collateralized.
If I haven't lost you yet, with the turn of events in the marketplace, my friend can't sell the property for what he has into it (for the original property that he got the hard money loan against), was taken advantage of by the contractor who had initially worked on the property and the property still needs roughly $40k of work to be in "sellable" condition.
The hardmoney lender is stating that he is going to go after the property that was cross-collateralized and start a foreclosure process to secure his interest in it.
It is my understanding that with the Aunt not signing acknowledgement or consent to have a lien placed on the cross-collateralized property, that this would not be legal.
Essentially this is my question. Can this be done by the hard money lender?
My friend is lookign for an attorney to speak to and possibly hold as counsel because he is not sure on what to do.
I advised him on a few methods that would help further protect him but he would like to speak to an attorney or get some more advice/input first.
I'd like to have multiple opinions on this before I have him speak to one of my attorneys.
Any advice would be appreciated.
Daniel
The hard money lender never had the aunt sign any documents stating that she was ok with this and he only had a single one page dosumnet signed by the other title holder on the property that was cross-collateralized.
If I haven't lost you yet, with the turn of events in the marketplace, my friend can't sell the property for what he has into it (for the original property that he got the hard money loan against), was taken advantage of by the contractor who had initially worked on the property and the property still needs roughly $40k of work to be in "sellable" condition.
The hardmoney lender is stating that he is going to go after the property that was cross-collateralized and start a foreclosure process to secure his interest in it.
It is my understanding that with the Aunt not signing acknowledgement or consent to have a lien placed on the cross-collateralized property, that this would not be legal.
Essentially this is my question. Can this be done by the hard money lender?
My friend is lookign for an attorney to speak to and possibly hold as counsel because he is not sure on what to do.
I advised him on a few methods that would help further protect him but he would like to speak to an attorney or get some more advice/input first.
I'd like to have multiple opinions on this before I have him speak to one of my attorneys.
Any advice would be appreciated.
Daniel