Posted by eric on May 17, 2000 at 10:20:24:
No, you don’t need to record it at all. It’s totally up to you. Of course, if they default, they’ve probably also not paid some other people, contractors, etc., who will by then have recorded their liens, and thus be in a superior position to you. You will then have no real recourse to collect on the debt, since the property will be over-leveraged.
I would HIGHLY recommend you record your mortgage instrument, as soon as possible after creating it. If they pay it off, then you just record a Satisfaction of Mortgage, a fairly ubiquitous legal form.
To record or not to record…that is the question - Posted by Scott SC
Posted by Scott SC on May 17, 2000 at 09:16:12:
If I carry back a 2nd on a property I’m selling to help someone get into it, do I record the 2nd? Is it mandatory to record the 2nd or is it my discretion?
Also, if I do record it and in 5 years it’s paid off, what do I need to file to get it off the title??
I love you guys for all your help
Let me tell you a tale about upside down and the stuckee… - Posted by David Krulac
Posted by David Krulac on May 17, 2000 at 21:15:15:
who will be you if you give a second mortgage without recording. what’s stopping the buyer from getting other liens in front of you and becoming “upside down” that is owing more than the FMV. you could be kissing your mortgage good bye. but if you don’t care if you get repaid then there is a line forming on the right for people who want you to lend THEM some money!