Posted on: 29th Jun, 2009 08:44 am
Hi,
I am lending some money to a friend to buy a house. How do I get added as second lien so that I don't loose my money just in case.
Thanks for your replies.
I am lending some money to a friend to buy a house. How do I get added as second lien so that I don't loose my money just in case.
Thanks for your replies.
Hi
Before placing a lien, you need to go to the county civil court in order to confirm that your friend owes you money. The court allows them some time, say 6 months, to repay the loan. If the loan is not paid, you need to send him a certified letter expressing your intention of filing lien against his property. The judge will hold him in contempt of court and will order a a judgment agaianst him. Then, you will have to file the civil court judgment with the land records office to place a lien on the property.
Before placing a lien, you need to go to the county civil court in order to confirm that your friend owes you money. The court allows them some time, say 6 months, to repay the loan. If the loan is not paid, you need to send him a certified letter expressing your intention of filing lien against his property. The judge will hold him in contempt of court and will order a a judgment agaianst him. Then, you will have to file the civil court judgment with the land records office to place a lien on the property.
You need two things: a Promissory Note in the amount of the loan and a Deed of Trust securing the Promissory Note. Record the Deed of Trust in the county where the property is located.
Thanks both of your savior70 and jheard for the response.