Cross Collateralization
The following note should be in the Recommendation, Executive Summary, and Title Comments of the Condition Report by way of the Net Equity Worksheet.
NOTE: The net equity of this property is impacted by the full value of a mortgage lien that covers other properties as well. This is known as “cross collateralization”, where more than one property is used as security for a single loan/mortgage. Obtaining a partial release of the single loan/mortgage from the lender/lien-holder proportionately with the sale of this property would reduce the mortgage’s burden and may result in a net equity estimate that qualifies this property for forfeiture and sale individually. A release however may not be available as releases are subject to lender/lien-holder approval.