Legal Question in Real Estate Law in Idaho

Default on personal loan and UCC-1 filing

I loaned someone money to finance her house. She signed a promissory note that was unsecured but she also signed a ''security'' letter which gives me security in her property if she defaults and the right to file a UCC-1. She has defaulted now and so I prepared a mortgage to have her sign along with a revised note. She won't return my calls now. I believe I have a security interest in her property because of the letter she signed. Does it help to file the UCC-1 against her in her home state with the property listed as collateral or do I need to file it in the county she lives in? Is there anything else I can do? I can't file a mortgage without her signing it, can I? She lives in Idaho where her property is located as well.


Asked on 9/17/08, 7:08 am

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: Default on personal loan and UCC-1 filing

I cannot comment on Idaho law. However, there are certain things that are common to NY law.

1. A UCC-1 is for personal property and not real property. You may file a lien against her personal property but that will not help you secure your money through the house. If you do decide to file the UCC-1, you would file the document in Idaho in the county where she lives.

2. A mortgage is a lien against real property. In NY a mortgage is signed and acknowledged by the homeowner. I suspect that the same is true in Idaho.

3. You ask, "Is there anything I can do?" The answer is yes, sue her under the note. Depending on the language in the note, you may sue her in NY or in Idaho. A Judgment filed in Idaho will create a lien against the real property. Depending on the laws in Idaho, you may sell the house to satisfy the Judmgent.

Mike.

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Answered on 9/17/08, 9:24 am


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