References: financial-dictionary.thefreedictionary.com/spreading+agreement The lender had never renewed such a loan. To complete this transaction, the lender needed a spreader agreement. A spreader contract is essentially used to extend the scope of an existing mortgage to other real estate. Lenders use spreader agreements to guarantee additional collateral for the loan. The purpose of this agreement is to ensure that the lender may, in the event of default by the borrower with the mortgage, forcibly close all the immovable property listed in the agreement. Mortgage companies can use the mortgage agreement to secure more collateral for the loan. This means that if a borrower does not make mortgage payments for a property under the mortgage loan agreement, the lender can exclude all the real estate listed in the agreement, even if the others are up to date on their payments. The borrower may agree to enter into a mortgage agreement to save money to pay higher mortgage registration fees if they insure new mortgages for real estate. Adam Leitman Bailey, P.C. worked closely with the lender, co. and the borrower`s lawyer together to ensure a smooth transaction. The borrower saved $US 8,000.00 in mortgage taxes and received the funds to combine his units.
All parties involved have been very grateful for our achievements. This agreement would spread the new mortgage on the borrower`s current entity on the additional unit, allowing the borrower to save mortgage tax on his first unit, wait for the three-day withdrawal period after the completion of his refinancing, and purchase the additional unit, while obtaining the necessary funds to combine the two units. At the same time, the Spreader Agreement ensures that our client, the lender, has a perfected deposit right on both units. A spreader agreement is a document that extends the scope of a mortgage to other real estate and sometimes to new lenders or borrowers. Adam Leitman Bailey, P.C. recently represented a large lender in a spreader deal. The lender`s borrowers wanted to refinance their current condo with a consolidation change agreement that assigns their current mortgage to the new lender in order to save a large amount of mortgage tax. Also, they wanted to get funds from their refinancing to buy the condo next door and combine the two units once they graduated for their growing family.. . . .