Legal Question in Real Estate Law in Florida

Personal loan used for purchase of real property

Five years ago, I borrowed money from a friend which I used towards the purchase of my home. The mortgage and deed are in my name only. Since then I have paid her sporadically whenever she has asked for a pymt. We became unfriendly 1 month ago and she has now asked for full repayment. Three weeks ago, she asked that I pay her within 2 years. I set up auto pay with my bank. Two weeks ago she asked me to pay her in full within 30 days. Last week she said I should pay her in 3 months. Today I received a letter from her attorney stating again that I had thiry days to repay the loan. This loan was based on a verbal agreement with no specific repayment schedule. At this time, her attorney states that his client has a ''purchase money mortgage'' on my home and he will obtain a lein and forclose if I do not completely repay this money within the 30 days. Does she have a legal basis to be able to do this? And what are my rights and options in this matter?


Asked on 5/20/03, 9:58 pm

2 Answers from Attorneys
David Slater David P. Slater, Esq.

Re: Personal loan used for purchase of real property

Since the funds were used to purchase a home a court of equity may give her an equitable lien . I suggest you work out a payment arrangement.

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Answered on 5/21/03, 2:54 am
Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: Personal loan used for purchase of real property

Unless you signed a mortgage and it was recorded of record in the county where the property is located, the creditor that you owe a few thousand dollars to does not have a bona-fide mortgage or lien on your property. Without learning more about your situation I cannot provide you with additional guidance or legal options that your creditor may have against you. However, you may want to borrow the money and just pay this lady off in exchange for a written release discharging you from any and all liability, debts, etc. to make certain she does not come back to haunt you in the future. It appears that her lawyer is simply trying to scare you into paying the outstanding obligation. If you wish to speak about this in more detail, please call my office at 305-445-0937. Good luck.

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Answered on 5/20/03, 10:03 pm


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