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Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 37045
Experience:  Texas Attorney for 30 years dealing in real estate
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I am preparing a note and Additional Advance. The deed of trust

Customer Question

I am preparing a note and Additional Advance. The deed of trust is in 1st place, but there is a 2nd note and deed of trust on the property. Can I record the Additional Advance and would that new note mentioned in the Additional Advance still be in fist position, or becaues there is a 2nd be behind the 2nd?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. I am Ray and will be the expert helping you today.
If there are already two unpaid notes this is considered a third note and would have lower priority behind the other two.In a foreclosure here a third lender is behind the two existing ones.There is no problem with that unless the prior notes have restrictions.
Any new loan here puts them in last place as the prior ones in time have priority.Original one is first, second one is next, and finally the new one.Unless you have combined one of the other ones there are three notes and three deeds of trust.
If you record the third here this is in last place you get paid if the others ahead of you gt paid in a foreclosure.You don't get ahead of the others until they are paid off and release the note.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.
Expert:  Ray replied 1 year ago.
More reference, as other loans are paid off you may move up in position.
https://www.wicourts.gov/services/public/selfhelp/docs/probateguide.pdf
Thanks again.
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