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Real Property
Can I place a lien against a property that is being sold for money owed to me?

Can I place a lien against a property that is being sold for money owed to me?

Q: Can you buy a house with a promissory note?

Yes, you can buy a house with a promissory note. When a buyer borrows money to purchase real estate, they often sign a promissory note to secure the loan. This note is a legal obligation to repay the lender, typically accompanied by a mortgage or deed of trust that secures the property as collateral.

Q: What's the difference between a promissory note and a mortgage?

A promissory note is a legal document that outlines the borrower's promise to repay a loan, while a mortgage is a security instrument that gives the lender a claim to the property if the borrower defaults. The promissory note details the loan terms, whereas the mortgage secures the loan with the property.

Q: What is the purpose of a promissory note?

The purpose of a promissory note is to formalize a borrower's commitment to repay a loan. It provides clear terms regarding the amount borrowed, interest rate, repayment schedule, and consequences of default. This document protects both the lender's and borrower's rights and obligations.

Full question:

I hold a promisory note for several thousand dollars. Loaned to help with the down payment of a house. Payments were made in the beginning but now have stopped due to a divorce. I'm concerned that the property will be sold and that I will not recover my loan unless I can place a lien against the property.

Category: Real Property
Subcategory: Liens
Date: 04/07/2025
State: California

Answer:

Please see the forms at the following links:

http://www.uslegalforms.com/us/US-00601-F.htm

http://www.uslegalforms.com/us/US-00601.htm

http://www.uslegalforms.com/us/US-0462LTR.htm

http://www.uslegalforms.com/us/US-0427LTR.htm

http://www.uslegalforms.com/us/US-NOTE88.htm

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.

FAQs

What is a promissory note in real estate?

A promissory note in real estate is a written promise to pay a specified amount of money to a lender at a certain time. It outlines the terms of the loan, including the interest rate, repayment schedule, and any penalties for late payments. This document serves as evidence of the debt and can be used to enforce repayment.