The second mortgage amount of $40,000.00 must be secured with another instrument other than the property.

I would not give you money without that security instrument!

They are highly leveraged instruments that people, companies, governments, can use to hedge against something that may be going against them in the future.

These trusts are designed to house real estate within a grantor trust and provide limited access to grantor or beneficiary information contained in the trust instrument or known to the trustee.

Additionally, reading some literature on contract law, as that is what the security instrument and note conform to will also help.

It is also important to notate what is being implied here is the conveyance of BOTH the security instrument (DOT/Mortgage) and the Note.

There have been some comments I have read on forums about lenders stating that they will reconvey the security instrument only - and consider the note still collectible for the unpaid balance.

that tax lien and any othe liens or instruments against the property should be cleared FIRST.

Review this area to determine (A) what instrument (Deed type) will be used to convey title, (B) who will select the title co/closing attorney, (C) who will pay for search-exam, certification and/or title insurance.

Both parties are running the risk of losing the property or being forced to pay the loan off in full if and when the bank enforces the due on sale clause which is present in almost every security instrument I have seen.