Real Estate loan question?
Jun 14, 2009
in
Private Real Estate Loans
If I loan a certain amount to a private person for a house and I take the first on the house, can he take out a second without me knowing?
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4 comments
Cheryl G on June 14, 2009 at 11:47 pm
He isn’t supposed to, but it does happen. For instance, he could get a loan from another friend or family member without your knowledge. Don’t do it. Too risky. Find another investment that’s safer and won’t have as much potential for disaster.
maxmom56 on June 14, 2009 at 11:47 pm
Yes, unless you have an agreement to the contrary, but not to worry, as long as your mortgage is recorded, the second will have to pay you off in order to foreclose.
just a girl on June 14, 2009 at 11:47 pm
Yes, he can take out a second, unless specifically stated to the contrary. As long as your lien is 1st position, you will be paid off before the second in foreclosure situations.
godged on June 14, 2009 at 11:47 pm
Sure. Perhaps in your agreement you should put some language about a second loan, but that doesn’t mean the person won’t do it.