Collateral Substitution Agreement | USA
Replace the property which is collateral for a mortgage with a different one under this Collateral Substitution Agreement.
- This agreement would be used by a mortgage lender in circumstances where a borrower wants to sell their mortgaged property in order to buy another property of approximately equal value.
- The original real estate property is released from the mortgage.
- The borrower's new property replaces the original one as collateral for the mortgage.
- The provisions of the original promissory note and all other loan documentation remain in full force and effect against the borrower and the new property.
- This is a generic legal document for the United States which does not contain any state-specific references.
The Collateral Substitution Agreement is a worthwhile addition to any mortgage lender's standard form documents. Download a copy now.
Last Updated: 08-February-2021