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Loren, Attorney
Category: Business Law
Satisfied Customers: 28562
Experience:  30 years experience representing clients .
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execute a promissory note secured by real estate

Resolved Question:

My customer suufered a stroke a year ago. At the time he owed me $7162.44. He has given me no new business because he is unable to work. Now with interest he owes me $8549.56. He has verbally promissed to pay once he sells his house. I want to produce a promissory note for him and his wife to sign in the presence of a notary of public and then record that note with the Los Angeles recorders office.

My question is how do I do this step by step?
Submitted: 7 years ago.
Category: Business Law
Expert:  Loren replied 7 years ago.
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<br />The note would say something to the effect that Customer promises to pay Creditor the sum of $XXX with interest accruing from the date of the note until paid in full at an annual rate of X% upon the closing of the sale of Customer's property located at ___________________, California.
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<br />DATE ________________   signed _______________________________
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<br />NOTARY (end of note)
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<br />--Be aware this is not secured by the real estate. The sale of the real estate is only the due date for payment.
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<br />If you want the debt secured by the real estate you would need to record a mortgage on the property. You would be a secured creditor in line behind the prior mortgages.
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<br />I would advise you to consult a local attorney to prepare the paperwork and review title issues, etc...
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<br />Good luck. Hope this helps.
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