Posted by dutch on May 16, 2006 at 07:52:47:
The answer to your first question is yes, you can file a mortgage. However, understand you will be in 2nd or maybe 3rd position, so if he defaults and the property sells at Trustee’s sale, you are probably wiped out.
You COULD insist on writing the check(s) to the creditors rather than give the money to the relative and trusting they will use it correctly.
The best way to protect yourself? Walk away and stay friends.
Good luck.
Dutch
OKHomesavers
Can I lend and protect my own money?? - Posted by wanabee
Posted by wanabee on May 15, 2006 at 08:36:18:
Hello All:
I want to help out a relative who is in a bit of a financial crisis. Is it possible to lend him my own money to pay off back taxes and immediate repairs on his home, but protect myself by putting a lien or personal mortgage against his property for the loan? Would I get him to sign some sort of collateralized note or another form of lien (mechanics?)? This would be for over $10k. Also if the city was to actually take his property to Tax Sale (assuming the remote possibilty my money was used for another purpose), would it be sold subject to my mortgage/lien against the property or does it get washed away at the sale? What would be the best way to protect myself in this situation? I am in PA. Thanks for all replies. --wanabee