Posted on: 11th Sep, 2010 07:12 pm
I own two homes outright, and one that is upside own. I live in the upside down one, but would like to purchase a new primary residence and put it up for rent (the rent would easily cover the payment)
If I use the homes I own outright as cross collateral, what happens if I want to sell one of them when the market comes back up? Does cross-collateral mean that the amount is secured for a certain amount. I hope this doesn't sound silly, but I'm not real clear on this whole concept.
If I use the homes I own outright as cross collateral, what happens if I want to sell one of them when the market comes back up? Does cross-collateral mean that the amount is secured for a certain amount. I hope this doesn't sound silly, but I'm not real clear on this whole concept.
Though you use the homes that you own outright as a collateral, you will be able to sell off the properties if the market improves. However, once you sell off the property, you should will have to pay off the mortgage in full to the lender immediately.