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1 Replies Last post: Dec 1, 2008 5:43 PM by Fortis

Enough equity on collateral

Dec 1, 2008 5:32 PM

coolmom30 8 posts since
Aug 24, 2008

Hi,

We are getting seller financing for a business we are acquiring. In return, the seller wants a collateral against our real estate. My question is does it matter whether there is enough equity on our house NOW to cover the financed amount? Is that something that will be checked by the seller's attonery when the lien is put on the property?

Thanks.

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Fortis 239 posts since
Jul 24, 2008

1. Re: Enough equity on collateral Dec 1, 2008 6:35 PM

Hello Coolmom30,

Yes the seller should have an appraiser determine an accurate estimate of the current value of the property. Although there is no fixed expiration date on an appraisal, most lenders consider them outdated after six months.

Hope this information helps

Thanks

Collin
Fortis Capital
cobringer@gofortis.com

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Enough equity on collateral

Dec 1, 2008 5:32 PM

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