Legal Question in Real Estate Law in Massachusetts

Re: Loan against a real property

You need a note and a Mortgage agreement. There is also an issue of interest and imputed interest depending upon the terms of the loan. The recording fee for the mortgage is $175.00 in MA. The cost of drafting a note and mortgage will depend on what you require.

Please feel free to contact me if you have more questions.

Re: Loan against a real property

A Note and a Mortgage (recorded at the proper Registry of Deeds) is what would be required to make it formal and protect all parties.

Re: Loan against a real property

You are fortunate enough to have 4 Massachusetts attorneys already post a reply to your question. I will chime in that a note and mortgage are necessary. In Maine the recording fee is very modest, under $30 for a short form mortgage.

Re: Loan against a real property

You need to be aware that any mortgage which you may have against the condo will be secondary to her regular mortgage. That is, if she gets into financial problems, the regular (first) mortgage will be paid first. If the first mortgagee forecloses and sells the property if your daughter fails to make her payments to them, you may end up with nothing.

If this is money which you really need to be repaid, it might be better for your daughter to simply seek a home equity loan. If she doesn't qualify for a home equity loan, will she really be in a position to repay you?

Re: Loan against a real property

We can draft a mortgage to protect yor interests. The advantage to this is that no other creditor can "get ahead" of you in the event that something unforseen should occur and your daughter is sued... even if her property was attached or liened, you would have a priority in time and right.

Contact me if you would like us to prepare and record these documents for you.

Re: Loan against a real property

This can be accomplished via a somple mortgage. I would be happy to help you if you wish to e-mail me or call my office. I would need the prior deed, or else I can obtain it.