Can I put a Lien against a relative's home for an unpaid personal loan?

Question

I loaned a relative money to keep his home from Foreclosing. Can I put a lien to protect my interest in the property in case something happens to him? He does not have a will and is not officially divorced from his spouse, so if something happens to him, SHE gets everything and I am out a LOT of money? If I can do this, how do I go about it?

We both signed a document stating the amount of the loan etc., but will this hold up in the event anthing happens. It was not notarized but it was witnessed.

Answer 1

You should have written that in a contact when you lent him the money.

He needs to give you the lien.

Answer 2

The time for you to have placed a lien on the property was directly at the time you loaned the money. That is what a mortgage company does.

However, since you state that this man is near foreclosure, I suspect that his house may be encumbered for more than it is worth. If you seek a legal judgment to gain a lien (that is what you must do unless he is willing to sign without going to court), there may be nothing left there after priority lien holders are paid.

In the event of a foreclosure, there are lien priorities, and I guarantee you that the lender (first mortgage) has first priority over you. Hence, you get the 'leftovers'.

Answer 3

You need a lawyer. A lien can be put on the property, but you'll have to go through the proper court channels to do so.

Answer 4

You'll have to get a judgement FIRST.

you can't lean the property UNLESS in the original paperwork they signed they pledged as collateral their property.

Hope this helps.

P.S. Once you get a judgement, then you can go to the county recorders office and file the judgement against the home.