Using an asset that is currently being used as collateral for a loan is also used as collateral for a second loan. If the debtor was unable make either loan’s scheduled repayments in time, the affected lender(s) can eventually force the liquidation of the asset and use the proceeds for repayment.
When investors and business owners have a property with equity you can use that to secure another loan. This process is known as cross-collateralization. Cross collateralizing is advantageous because you don’t have to encumber multiple pieces of collateral. Use cross collateralizing to get the money you need for your next project fast
Technically, taking out a second mortgage on a property is considered to be a cross-collateralized loan. In such a case, the property is originally used as collateral for the mortgage. The second mortgage is then tapping into the equity that the property’s owner has accrued for collateral.
If you are trying to refinance a commercial property, there may not be enough equity in the property to fill your need. Cross collateralizing allows you to generate funds for investing or projects that would not be possible with a regular banking organization. With cross collateralization, the lender is able to add extra collateral to the loan, making it more desirable. If your credit rating is not as strong as a regular bank would require, the lender may require a second property as collateral due to the risk that the borrower’s credit rating poses.
Complete our funding application as thoroughly as possible. It’s completely confidential, costs nothing and you’re under no obligation.
FAST QUOTE
RAPID NOTE PURCHASE™ GUARANTEE:
Whether we buy your note in-house or with our partner lender you are backed by our We Buy Notes Guarantee™ so you have peace of mind of a professional closing so you can get your cash faster!
"Your flexibility allowed me to get my money faster even though