Loaning someone money in Florida?

Question

Say I want to loan a property owner $1,000.00 to have some work done on her house by a third party contractor. What is the best way to record this note and protect my loan to her? Am I able to file a lien on the property without being a liscensed contractor? Would it be easier just to record a 2nd mortgage on the property?

I'm not sure about hoping she pays and suing her if she doesn't, it seems very hard to collect judgements through the court. I would much rather just file a lien or a mortgage, any advice.

Thanks,

look, i don't really need advice on 'whether i should lend the money or not'. i need some advice on 'how to best structure the loan collateral-wise'. i appreciate the help but i'm looking for more of a technical answer versus an opinion on the risk factors of the loan.

thanks again.

Answer 1

The best way to go about securing your loan would be to place a Mortgage on the the property.

You will need to draw up a Note outlining the loan terms and a Mortgage to Secure the property as collateral.

To due this properly I would always suggest going to a title co.
Unfortunaly this loan amount is so small the cost of a few hundred dollars would not be very cost effective.

IMO, I would suggest looking to the internet for these forms. They must be specific to the state of Florida and may be hard to find for free. Florida displays all recorded documents online at Myflorida.com in the Clerk of Courts section. Go there and find any recorded Mortgage in the Public records and copy this with your applicable information. A Note is fairly simple to by at the office supply store.

(Please note that Florida is a homestead state. When the mortgage is filled out...the spouse must sign regarless if they are on the deed. So when you fill out your Mortgage, the borrower should read "Joe Smith and Jane Smith Husband and Wife" or Joe Smith, an unmarried man. If this is a NON Homestead property..Joe Smith a married man encumbering his non-homestead property, spouse does not need to sign in this istance)

You can record the Mortgage with the County, the cost will be $10/first page $8.50 You will also need to pay a Mortgage tax of $5.50. To save the cost, I would suggest not recording the mortgage unless a problem in repayment arises. You will save money this way and save yourself the hassel of later having to release your lien. Should the friend fail to repay, record the lien and you will be secured.

Once the loan has been repayed, if the lien is recorded it is you must record the release. (this can also be found on Myflorida.com)

Spell check is out, so excuse any mis-spelings!!

Answer 2

You might be able to file a lien on the house NOT as a contractor, but as a private mortgage holder.

Keep in mind that some states have minimums that must be in arrears before you can legally foreclose. I seriously doubt that the full $1,000, if she didn't pay it at all, that the court would give you permission to foreclose on that amount. However, it would make sure that you got paid if she sold it.

Answer 3

I just wouldn't do it. For $1,000, you're going to pay that in court fees if you ever did sue to collect. It's not worth the investment, and if her credit is so bad she can't get a small loan or a credit card to cover the debt, it will be apparent she's not the kind of person that is trust worth enough to loan to.

I must add that I live in FL and am a legal Florida Notary. You can only notarize something if the people are in person, so it is difficult if you live out of state to get any legal documents notarized... unless you were to visit. Any notary that would do this within any state would be breaking the law, and any documents could be null in court.

Answer 4

Dont lend money out, if they cant pay for the repairs right now what makes you think she will pay you back. I am buying a house soon and was told that if I need to make repairs to a house they would give me 5000 dollars to repair the house or fix it up. Let her do that instead.

1000 dollars is alot of money and please dont give it to them, its hard to get money back if you sue them, they can always file bankruptcy and you will lose out.

What if you have an emergency right now with your car or something.
Keep that money with yourself, problems usually happen between neighbors or others when you lend out money.

Take it from me. I had lend money out they wouldnt pay back, even with a promise. They tell you everything you wanna hear and then in the end no money.

let her go to a bank and get a loan. thanks
I am being honest and straight up, you will regret it if u lend out the money, remember you might be broke because of it, unless you can afford to lose 1000 dollars.

good luck

Answer 5

Have a promissory note drawn up. It should outline the terms of the loan and a repayment schedule. Make sure to have it signed & notarized. many office supply stores sell blank documents for this, or you can google "promissory note" to get more info or find forms online.

Answer 6

If you lend this money, consider it gone.

For this amount, she should either borrow from a credit card, borrow from a bank or (pre) arrange payment terms with the contractor.

If you MUST lend, ask for and take possession of collateral.

Answer 7

Get it in writing, notorized whatever you do get that person signature on paper. Protect yourself.

I too, wish I lived in Florida. Just came back last week, from Walt Disney World. I am thinking of retiring to Florida. Have a good day.

Answer 8

the reason that no one has completed the loan process is because there IS NO LOAN PROCESS! they are scammers and will ask you for more money after you send the first "collateral payment" which is absolutely insane that they should want money before your loan is funded. they almost got me, but i luckily stopped payment... If you are still curious...try it out and be sorry..

Answer 9

I don't think you should lend this lady any monies. Cuz hey, whos knows if you evers gonna see dis money eva again. I mean it's probably safer to just not give this crazy lady any monies. I knows if i has a choice of giving some crazy lady monie or keeping it for myself and buying food and shelter for the little ones, i chose foond and shelters. buts thats just my opinyun.

Answer 10

Only make this loan if you can afford to give 1k as a gift.

If she doesn't want to pay you back it will cost you too much to force the issue.