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    1 Reply Latest reply on Dec 1, 2008 6:35 PM by Fortis

    Enough equity on collateral

    Newbie
      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.
        • Re: Enough equity on collateral
          Fortis Wayfarer
          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 Although there is no fixed expiration date on an appraisal, most lenders consider them outdated after six months.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