Legal Question in Credit and Debt Law in Texas

how to secure debt

I want to borrow money from my parents to refiance my home. They want to ''secure the debt'' by having me put up my house as security. I want to be able to deduct the interest I pay them on my taxes. One of the requirements stipulated by the IRS is that the ''debt is secured'' and possibly registered or perfected under state or local law/rules.

How do we do that?


Asked on 11/02/04, 11:41 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: how to secure debt

The same way the mortgage companies do. You execute both a promissory note to repay at a readily ascertainable rate of interest, and a deed of trust securing the note. The deed of trust is then filed in the county's real property records.

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Answered on 11/02/04, 12:16 pm


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