The security/collateral for the loan will be the first mortgage of the property. Collateral security such as assignment of insurance policy or any such other assignable financial instruments would suffice the need, The title to the property needs to be clear, marketable and free from encumbrance. Most importantly there should not be any existing mortgage, loan or litigation on the property. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.