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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33781
Experience:  15 years real estate, Realtor. Landlord 26 years
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If I sign a promissory note for 250k as a line of credit but

Customer Question

If I sign a promissory note for 250k as a line of credit but have no evidence of drawing from the line of credit in the form of a wire transfer or have any receipts from the alleged use of the line of credit, and after the loan is closed, can the lender have a lien against my property for 250k and threaten foreclosure even though I signed a promissory note. Does the lender have to show evidence of such draw in order to place such a lien?
Can a 2 separate liens be place on two separate properties for the same note $250k?
Can two lien's be placed onto the same property for a total sum of $500k just because the promissory note was filed.
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Barrister replied 3 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

Expert:  Barrister replied 3 months ago.

IF you signed a promissory note for $250K, you are stating that you owe someone that money. This is true whether you ever actually got any money or not. You could have given them the note for a purchase, or as a gift, or for a loan or whatever. The point is that by signing the note you are agreeing to pay the holder $250K.

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And if they then recorded that note, it becomes a lien on any properties that are located in the county where it is recorded.

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And it isn't a total of $500K, it is two mutually independent $250K liens. So if the $250K was paid off, then the lienholder would have to file a lien release for both properties. If one property was sold to pay off the $250K, then they would have to file the lien release for the remaining property.

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thanks

Barrister

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