Documentation for "Abundance of Caution" Liens

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Question:

Can you help by describing how my documentation might differ when I'm taking a lien or mortgage in an "abundance of caution" as opposed to using the collateral as my primary security?

Answer:

The only place where I'm aware that the concept of "abundance of caution" has an impact with regard to compliance is with appraisal requirements. From a non-compliance perspective, you might be less concerned on this type of loan with perfection of lien, so you might be willing to accept a title opinion instead of a title policy or things like that.

First published on BankersOnline.com 10/17/2005