Question About Filing A Lien
My brother has hit hard times. He is 3 months behind on his mortgage. My dad is stepping in and is going to loan him $2500.00 to be current.
Of course we think in another 3 months he will probably be behind again.
So I told my dad he should put a lien on the house for the $2500.00 to ensure he gets that money back if it gets foreclosed and sold to someone else.
Is this the thing to do? And how do you go about filing a lien? Would a warranty deed also work?
Thanks,
Emily
A lien is easier - you can go to the courthouse and get a lien form
A lien is easier - you can go to the courthouse and get a lien form
I sure don't know about FL, but not in TX, and you won't find any forms there...except in form books in the law library.
But I agree that your Dad needs to either take back a Deed of Trust or get the deed on the house, so he can take it over when your sibling defaults.
He'd best have a lawyer do this for him so it's done right.
Quote:
So I told my dad he should put a lien on the house for the $2500.00 to ensure he gets that money back if it gets foreclosed and sold to someone else.
This is incorrect information. If the senior mortgage forecloses on the property, this lien will be extenguished and the only way your dad will get paid back through the lien is if there are overages from the senior mortgage.
For example if there is a $50,000 mortgage on a $100,000 house, your dad stands a decent chance of getting his money back.
But if there is an $70,000 or higher lien, the equity will be wiped out by attorney fees and deliquent interest pretty quick thus leaving with no overage from the sale of the property to pay your dad back.
The best idea would be to use a warranty deed and transfer title to the dad. Your brother can make payments to your dad while your dad makes the payments to the mortgage company. Should your brother fail to make payments, your dad can kick him out and either put another tenant in there or sell the place.
A quit claim deed is just a deed where someone or some entity can convey thier interest in a property to another.
What differentiates it from a warranty deed is that it does not state nor imply any guarantee or warranty as to the marketability or status of said interest.
So yes your brother could convey his interest in the property to you and yes if his wife would still own her interest in it unless she conveyed it to you as well.
And yes the liens and mortgages would still be attached to the property and could still foreclose if they where in default.
Good luck
if the q/c is conveyed to you, you are then legally half owner with the wife with all the responsiblites of ownership......km
if the prop. is f/ced you will loose all interest in the prop.......km
I had an interesting experience on a property where I had taken a QCD, as a 1/2 interest investor, but did not record for a long time.
When it dawned on me that I'd forgotten to record, I did dig it out and sent it to recorder.
But get this: My dishonest co-owner was in the process of mortgaging OUR house, and had claimed to her bank that she owned the whole thing free and clear...and the DAY AFTER I recorded, she was going to mortgage HER house to that lender!
Providentially, my recording was at the last possible minute to cloud her deal.
She did go ahead and get her loan, by mortaging everything she had, including her HALF undivided interest in our property!
Then, as I could have predicted, knowing Betty and her ways, she was eventually foreclosed and lost her half of this property...and I ended up being half owner with the Big O (Ocwen)..
I'd thought Betty was a bad co-owner, but he Big O was worse to deal with. We finally agreed on price and procedure and sold the property, but it was an interesting journey.