Full question:
What form can I use to place a lien on a house for a personal loan given to the borrower to use as the down payment for the purchase. There is a first lien already for the first mortgage on the property. The house is owned solely by my wife. I loaned her the funds from my own personal funds. We reside in Illinois . The house in Charlotte is an investment property. I can add a promissory note to the lien if needed.
- Category: Civil Actions
- Subcategory: Liens
- Date:
- State: National
Answer:
A promissory note can include a security agreement, which allows you to use specific property as collateral for a loan. One type of mortgage is a purchase money mortgage, where the buyer secures the remaining purchase price with the property being sold, often seen in seller take-back loans. If a borrower fails to repay a debt, a judgment in favor of the creditor may lead to a judgment lien on the debtor's property. However, it's important to note that the home may qualify for a homestead exemption under Illinois law, which can protect certain assets from creditors' claims.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.