
Quoting
adjusterjack
I have absolutely no expertise on your question but common sense and a knowledge of human nature tells me that a change in collateral isn't gonna happen if you've already given the borrower the money based on collateral that you accepted at the getgo.
The only leverage you might have some day is if he wants to borrow more money for something else in the future and that's when you can insist on restructuring the first loan with better collateral as a condition to making the new loan.
Beyond that I don't imagine any borrower being dumb enough to upgrade his collateral if he doesn't have to. If that's what your intention is, it just doesn't make any sense to me.
And you refer to "collection proceedings." If the loan is already in default, fageddaboudit.