Can a homestead property be used to secure collateral if someone defaults on the loan?
Full Question:
A guy wants to borrow $100,000 from me and use his home and 10 acres for collateral. His property and home are certainly worth at least $100,000 but I was not sure if I would be able to take ownership of the property if it was a homestead, if he defaulted on our loan?
04/29/2009 |
Category: Real Property ยป Homestead |
State: ALL |
#16470
Answer:
Promissory notes may be secured or unsecured, meaning that they include a security interest in the terms or not. In order to take ownership of property when a debtor defaults on a loan, the lender needs to have a security interest in the property, so that the property may be
taken as collateral in the event of default. Provided that all protected parties sign, the homestead law would not prohibit you from foreclosure.
