Can I put a lien on a personal loan?

Question

I’m considering lending some money as a personal loan. He’s going to list his house soon and we both agreed a lien would be a good route if it’s not too expensive. Is there a website or how would one go about this? Can anyone put a lien on a house if owner ageees?

Patrick Roberts · Answer

If the loan is for personal use or secured by an owner-occupied property, then youre getting into consumer finance territory. You'll need to comply with consumer finance laws at the state and federal levels. Most states require lenders to be licensed to originate third-party consumer loans.

Chris Seveney · Answer

you need the borrower to sign a note and then a mortgage/deed oftrust to securitize against the home - if it is in texas they hvae some real quirky laws about putting liens on a home especially if in second position. You will want to get an attorney to draft the docs and the borrower typically pays this cost as part of closing

Stanley Yeldell · Answer

Yes, you can place a lien on a property for a personal loan if the property owner agrees. Here’s how you can do it:

✅ General Steps:

Draft a Promissory Note & Security Agreement

Clearly outline the loan terms (amount, interest, repayment terms).

Include a security clause that allows you to place a lien on the property.

Have the Borrower Sign a Deed of Trust or Mortgage

This legally secures your loan against their property.

This must be notarized and often prepared by a title company or real estate attorney.

Record the Lien with the County Clerk

Go to the county where the property is located.

File the Deed of Trust or Mortgage.

You are now officially a lienholder in public records.

🔒 Things to Know:

Yes, anyone can place a lien with the owner’s signed consent.

Use a real estate attorney or title company to ensure the docs are enforceable and properly filed.

This makes your loan secured, meaning if they sell, you get paid out of the proceeds.

Would you like a sample promissory note and lien document template?

Mike Grudzien · Answer

Work with an experienced local attorney....Period.

Can I put a lien on a personal loan?

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