I know there are several types of liens,but I'm not sure which one I need. I loaned money to prevent a house from being foreclosed on. now can't get paid back. what is the type of lien that i need to file in order to get paid back,because they are talking about selling the house now?
You can't just file a lien. You Should have gotten a mtg executed by the owner, that is what you file to have a "lien" on the house. Otherwise, you'll have to sue them for non payment, and when you get a judgment, that will serve as a lien on the ie property. I assume you didn't get an executed mtg, did you at least get a proper Promissory Note executed?
GOT A PROMISSORY NOTE,WITH DETAILS OF HOW IT'S TO BE PAID BACK AND THE INTEREST RATE LISTED
Then you have to sue them in court if they have breached the terms of the Note. You can not file a lien. Do you know if they plan on paying you when they sell, or are they planning on just stiffing you?
BTW, lose the all caps writing, it's annoying.
You should have taken a mortgage when you got the promissory note. Looks like you got hosed on this deal. Like others have said, you must sue them, get a judgment, and then file a judgment lien against their house. And even then, In most states, homestead residences are immune from foreclosure on Judgment liens. Sorry man. Bad deal.
Is the borrower in default? And does your Note have a Confessed Judgment provision? If so, you can obtain a judgment quickly and you'll have your lien. Next time have a Deed of Trust or Mortgage executed at the same time as the Note.
Another thing I would do is, after you file a lawsuit, file a “lis pendens” on the property. This is basically a document that gives notice of pending litigation with respect to a property. It’ll give any title company serious pause before insuring title on a sale, and it will notify potential purchasers that there is a claim involving the property. That may slow down any potential sale.
YEP,SPOT ON DI DI DEE