How do I file a lien on a property as an investor?

Buying & Selling Real Estate
3yFollow

How do I file a lien on a property as an investor?

Nana Osei
MD · Member since 2017 · 24 posts · 7 votes

I loaned some money to a real estate developer who was flipping a home in Baltimore. We signed a promissory note with a specific due date. She used the home as collateral. Initially, everything went smoothly, and she made timely payments. However, when I traveled, I assumed she would continue making payments. Unfortunately, she stopped making payments and, when I inquired, she claimed that the house had collapsed, and she had to file an insurance claim.

I visited the property and observed that it had been boarded up. It has been six months, and I have not received any payments, and the promissory note is now overdue. I consulted with a real estate attorney who charges $300 per hour and requires a retainer. Is there any way I can file a lien on my own?

0Reply
46 views

2 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    3y
    did you record a mortgage or is it and unsecured note.

    if you filed a mortgage then you start a formal foreclosure. 

    if its an unsecrued note then you have to Sue on the note
    which entails hiring and attorney and filing suit.

    question is     is there enough at risk to throw more money at it and what are your chances of collecting if you get said judgement.

    If your a first position mortgage you will get something.  if your second position chances are less that you will get any recovery.. and if its unsecured your only going to collect if they have money and no debt on the property.
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
  • Nana Osei
    OP
    MD · Member since 2017 · 24 posts · 7 votes
    3y

    Unsecured note and we have to sue on the note. Regarding the question, yes there is enough meat on the bone to pursue this due to the original loan amount.

    I pondered the second part, as it may take awhile to collect on it, may be other creditors or she may have even filed for bankruptcy. I am doing more research.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free