Legal Question in Credit and Debt Law in Massachusetts

Can I get my money back on a personnel loan if I place a lein against the house

I loaned my sister $7,500. to prevent her from fore closing on her house. The house is presently on the market. I had her sign a promisary note to pay the balance in full the day the house was sold. I cannot afford to loan her anymore money and I do not have faith she is going to make anymore mortgage payments. If I place a lein against the house can I get my money if the house is foreclosed on?


Asked on 11/20/03, 5:51 pm

1 Answer from Attorneys
David Baker Law Office of David Baker

Re: Can I get my money back on a personnel loan if I place a lein against the ho

Probably. The law provides that IF there is money left over after paying the mortgage, other creditors with liens get paid. Note the "IF". There's no certainty that there will be money left over; it depends how much the house sells for at the foreclosure. The other problem is getting a lien. You could either ask your sister to give you a mortgage for the amount of the money you lent, or you could ask a judge for a lien. I would not hold out a lot of hope that a judge would give you a lien, but it's possible. The easiest way would be to ask you sister to give you a mortgage. You really should have a lawyer help you with that. Why not tell your sister to call me about a bankrutpcy case? That could help her prevent foreclosure and keep the house! My phone number is 617-367-4260. Good luck!

Read more
Answered on 11/21/03, 11:51 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Massachusetts