A family member is going through a divorce where he and his wife are titled on their house. He borrowed a significant amount of money from me after their separation to have it refinished. Can he and I sign a promissory note that the amount is due me upon selling of the house - even without her signature? She doesn't want the house - and part of her divorce settlement will come once the house is sold, but she won't take her name off of the house until she gets her settlement. The added problem is that he is in failing health, and chances are, the house won't be sold until he passes. Her name will still be on the title and the divorce will probably never happen. It's a contentious situation and asking her to sign the note is out of the question. They live in Oregon.
2006-06-19 10:03:38 · 7 answers · asked by michele m 1 in Business & Finance ➔ Renting & Real Estate
A note is a contract for a person to pay you money. It is only binding on the people who sign it. In order to use the property as collateral for your loan, you must execute a mortgage. The mortgage, which is a lien, must be signed by all persons with an interest in the property to be enforceable. So if the wife wont sign, you only have a claim against the future estate of your family member.
What your family member COULD do, is deed you a share of the property equilalent to how much he owes you. i.e. half of his interest = 1/4 share of the property.
2006-06-19 10:37:32 · answer #1 · answered by attorney_johnson 3 · 0⤊ 0⤋
Sandy S, The reason people are using the word fraud is because you cannot get a mortgage using borrowed money but you can use money given to you with as a gift with no expectation of pay back. To be sure the money is a gift the MIL signs a document called a Gift Letter attesting to what I cited in the beginning and acknowledging the penalties if there is any fraud in the Gift Letter. The couple also knew this was not a gift but a loan so in fact they both committed fraud to get the mortgage. Pojo, if the mil goes to the lender to turn in her son and daughter-in-law she will be admitting she committed fraud too. btw No one can force you to sign a Promissory Note. Do you have any idea why she wants you to. If you don't why don't you just ask her? Has there been some kind of disagreement with her about something else and this is some crazy kind of revenge? Don't sign anything from her lawyer without consulting another lawyer for advice. One consultation shouldn't cost too much.
2016-03-26 21:55:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My advice would be to put a Lien against the property. If he's willing to sign a promissory note, great, attach it to the Lien and have it recorded with the State Recorder's Office in the County/City that the house is in. You might have to update/file an extension of the Lien every 6 mo. or so. But that will ensure that when/if the house is sold you will get paid. Be sure to put as much information as you can on the Lien, including Legal Description (lot, block, subdivision and plat #) and the Owner's full names (include his wife)
2006-06-19 10:17:41 · answer #3 · answered by aphrodite_ak 2 · 0⤊ 0⤋
You two can sign the note as an act of faith that you will be re-paid. But because his soon to be ex is on title she does have final say so. But I would talk to an attorney. You may be able to place a lien on the title so if she does sell after his death you will ensure that you can get re-paid those funds. But see an attorney!!!!!
2006-06-19 10:10:15 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I suggest you see a lawyer, and ASAP. You could be out what he owes you. Since you do not have the promissary note in writing now, what incentive does he have to pay you? It sounds to me like you are on awfully legally shaky ground.
2006-06-19 10:09:47 · answer #5 · answered by lynda_is 6 · 0⤊ 0⤋
I'm pretty sure both would have to sign since they are both deed holders.
2006-06-19 10:08:26 · answer #6 · answered by Hula Girl 4 · 0⤊ 0⤋
this is the area where you might WANT TO consult an attorney.
2006-06-19 10:08:13 · answer #7 · answered by Mark 6 · 0⤊ 0⤋