Question
How do I feel a lien against a property I have lent against?
I am lending $45,000 to a friend to do renovations on his house. We have a drafted contract detailing the specifics and it has been notarized. His house is owned Free-and-Clear with no liens or encumbrances. The real estate taxes are paid up-to-date. I would be the first lienholder on this property. My question is: How do I go about recording this loan? I want to make sure I am the first lienholder in case of encumbrance or lien from another creditor/lender, etc. I am in Maryland. Property is in Baltimore City. Thanks for your help!
1 month ago - 5 answers
Best Answer
Chosen by Asker
You need a real estate attorney licensed to practice law in Maryland to draft a mortgage and promissory note for you. You can find a local one at the link below.
Source(s)
www.martindale.com
by mcmufin
1 month ago
Asker's Rating: 
Other Answers
You would have him sign the promissory note or agreement, which would then be collateralized by a Real Estate Mortgage in your favor. He would also sign this mortgage. It would be recorded with the County Records, just like a bank would do.
by DeeDee- 1 month ago
You write up a note for the $45,000 and a deed of trust. (note secured by a deed of trust) Then you record the trust deed with the county recorder. Very easy to do, but you can also go to a para-legal or to site like Legal Zoom.com and save a large lawyer fee. Or often the title insurance company will do it for you for $50-$100 if you purchase their title insurance policy. It's as about the most simple legal thing anyone can do....a total no brainer. Also, the owner/mortgagor should pay the recording fee. It would be wise is to verify that you are truly the only lien holder and that their aren't any kind of cloud on the title. The only way you do that is by having the owner purchase a title insurance policy naming you as an insured. There might be liens against the property that the owner doesn't even know about.....I've seen IRS tax liens pop-up that the owner didn't know about.
by Glenn S- 1 month ago
Go to a real estate attorney to draft the contract. This will help protect you. Second record the first deed of trust with the help of an escrow. They will look into all encumbrances and liens. This will help protect your investment.
by Big Deal Maker- 1 month ago
you need attorney. borrower signs loan and a mortgage. the mortgage is recorded. mortgage is the document that borrower uses to pledge the real estate as collateral for the loan.
by David Z- 1 month ago