How to ensure repayment of house payments for a friend who is selling her home
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Answer:
A judgment lien is obtained after a loan has gone unpaid and a person sues and wins a judgment based on the loan contract. After winning the judgment, the creditor can use the judgment to place a lien of the property. However, secured creditors, such as a mortgage company, will come ahead of an unsecured creditor in the collection line when property is sold to satisfy a debt.
I am unable to provide legal advice, such as recommending a particular form. Personal loans are commonly made with a promissory note. The note may be secured or unsecured. If it is secured, that means there is property, called collateral, that may be taken to satisfy the debt if the debtor fails to make timely payment. A mortgage loan is a typical example of a secured loan, secured by the property the loan is made to acquire, which may be sold if the debtor defaults on the mortgage. A promissory note may also contain a cognovit or confessed judgment provision that has the debtor agree to waive any defenses if the matter
goes to court.