Hi, Walter, My name is XXXXX XXXXX I am a Licensed, Practicing Attorney with over 25 years experience in real estate law,
If you want to be assured that you will be paid if your friend sells the property with the house located on it, you should have your friend execute a mortgage in your favor and have it recorded. This will assure you that your friend would not be able to transfer clear title to any prospective purchaser unless you were paid your $12,000 and you execute a Satisfaction of Mortgage which would remove the lien of the mortgage from the property,
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Can my Friend execute a Mortgage in my Favor without Owning the Property. The Bank would not accept that. Should the Mortgage be for the Value of the Property ee 12.000.-
I apologize, but I often must assist several customers simultaneously, so please do not think that I have forgotten you.
1. Your friend would have to have title to the property in order to execute a valid mortgage, but you said you were going to give her a Quit Claim Deed.
2. Yes, the mortgage would recite the $12,000
Q. Why would the bank object to this arrangement ?
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