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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Blanket Encumbrance Posted by Rick Harmon on August 07, 2003 at 7:56 AM In Reply to: Blanket Encumbrance posted by Travis-CA on August 06, 2003 at 7:13 PM : : Ward, : : Someone asked me about securing a note to 2 properties at the same time. Is this possible?, it's the first I have heard of such a thing. Would you just file a TD on both properties with one note? : : Thanks for the help. : : Damien : Damien, : What you are refering to is known as a blanket encumbrance, it allows one deed of trust, mortgage or sales contract to encumber many properties. These typically have a release clause that allows for specific properties to be released from the lien upon payment of agreed sums. These are very common with developers who borrow a large sum to build many homes and the bank releases the homes as they are sold one by one. : Travis Damien, It is not unusual to record a separate trust deed for each parcel to secure one promissory note. This may offer some flexibility to the lender/bene in order to have more leverage in the event that a problem exists with any other single TD so that the security for all others is not jeopardized. It's important to discuss with your attorney or foreclosure trustee service in advance (who might have to foreclose on your behalf later) to advise you of the pro's and con's. These might be significant, especially considering all the "fun" stuff that happens with cranky borrowers in default. Hope this helps Rick Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward, : : : Someone asked me about securing a note to 2 properties at the same time. Is this possible?, it's the first I have heard of such a thing. Would you just file a TD on both properties with one note? : : : Thanks for the help. : : : Damien : : Damien, : : What you are refering to is known as a blanket encumbrance, it allows one deed of trust, mortgage or sales contract to encumber many properties. These typically have a release clause that allows for specific properties to be released from the lien upon payment of agreed sums. These are very common with developers who borrow a large sum to build many homes and the bank releases the homes as they are sold one by one. : : : Travis : : Damien, : It is not unusual to record a separate trust deed for each parcel to secure one promissory note. This may offer some flexibility to the lender/bene in order to have more leverage in the event that a problem exists with any other single TD so that the security for all others is not jeopardized. It's important to discuss with your attorney or foreclosure trustee service in advance (who might have to foreclose on your behalf later) to advise you of the pro's and con's. These might be significant, especially considering all the "fun" stuff that happens with cranky borrowers in default. : Hope this helps : Rick Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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