I have a signed promissory note for a house in which they refuse to make mortgage payments on. What can I do with the promissory note? Can I register it against the house so it will appear should they attempt to get another mortgage on the house? Can I put it on title? As stated within the promissory note?

Foreclose! If the promissory note states that the home was used as collateral then there should already have been a lien filed against the house. If not, then do so immediately.

But if the house was used for collateral you can foreclose. If the house was NOT used for collateral, then you have to sue, get a judgement and attach their assets.

Hello lora:

You already SHOULD have a lien on the house, since you're the, or a mortgage holder. You'll have to have to sue them (foreclose) for your money. If you're the PRIMARY note holder, you can take the house back. If you're the secondary, you'll just win a judgment. Good luck collecting on that.

excon

Hi, Thanks so much for the info. I guess I didn't explain it clearly enough in my initial question but I do not yet have a mortgage in place. It is my mother who moved into the house and before we could register the mortgage she decided to not pay me. All I have now is a promissory note which states I can register the not on title if I desire. My worry is that she is seeking a mortgage somewhere else for a smaller amount that what she owes me and I will then have to stand in line behind the first mortgage holder. I am trying to find out how to register the promissory note and if it will prevent her from seeking another mortgage once the note is registered on title? Any thoughts? I really appreciate any help or advice I can get on this one! Fairly stressful when its your mom trying to screw you over!

It is unlikely that you will be able to record the promissory note to have it act as a lien on the title, unless the signature was witnessed and notarized at the time of signing.

If the note is not recordable, then if I were in your position I would immediately file a lis pendens on the property. This is a document that is recorded in the same place where mortgages are recorded and it acts as notice to the world that a lawsuit is about to be filed that concerns the property. No one will give her a mortgage when there is a lis pendens filed.

Once the lis pendens is filed, you then file a lawsuit for the amount of the promissory note. Assuming you go to trial and win a judgment, that judgment will then act as a prior lien against the property. She will have to pay off the judgment before she can finance the property.

I suggest that you speak to a real estate attorney in the area where the property is located. If the amount of the promissory note is more than the small claims limit then you will probably need to retain an attorney to file the lis pendens and handle the lawsuit.

So why haven't you run down to the county clerk's office and filed? What are you waiting for? As soon as you read, this get dressed, get in your car with copies of the note and head down to their office and get the thing filed!

I mean this is really a no brainer. If you shot yourself in the foot would you ask a Q&A site what to do?

Edited:
Just read Lisa's response. If she's right that the note isn't recordable, then you do exactly what she said. Either way, get off the computer and go to the clerk's office.