Legal Question in Real Estate Law in Michigan

ucc-1 form

Hi. I read somewhere that when you finance property from a lender (car,house,etc.), you have the right to file a ucc-1 stating the vested interest that you have paid into the property. Is that true? I also read that if they ever wanted to reposess or foreclose, they would have to pay you back the vested interest to you before they can do so. If this is true, how does one file the form as being someone with the vested interest that they don't want to lose? I.E., the debtor who does not want to lose all the money they put into the house or the car if it gets reposessed. Thank you.


Asked on 1/03/09, 3:53 pm

2 Answers from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: ucc-1 form

If there is equity in something that is repossessed, the lender is obligated to pay you the remaining proceeds after they are paid in full, there is no need to file a ucc-1, buying property is a risk you take. You can lose money and you don't get to get your money back just because you lose your poperty, there has to be value in it.

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Answered on 1/05/09, 11:42 pm
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: ucc-1 form

A UCC-1 is used by lenders who hold property as collateral for a loan given (i.e., promissory note). I can think of no reason a borrower would or should file a UCC-1.

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Answered on 1/07/09, 9:06 am


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