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What's the best way to secure a loan to a borrower who is purchasing foreclosed properties at the trustee sales? What pitfalls?

Mesa, AZ |

A friend wants to expand and needs money. I want to secure the money if possible against the property but there is no trustee's deed for days after the sale.

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Attorney answers 1

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There are a lot of options here, they are simply not the easiest to accomplish. If the friend has property that they own outright, it would be easy enough to use that property as the collateral for the money lent. You would want to be careful that you did not secure the money against an asset that is exempt - such as a homestead or a vehicle unless the equity was just right. The answer depends on what the real financial situation of friend is.

Douglas Edmunds is in the business of helping people and companies file for bankruptcy protection. The bankruptcy code requires that I call my firm a "debt relief agency." Any answers or information provided is for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the legal issues. This is not intended to create a attorney-client relationship. Each individual's situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state for specific information.

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