I have a house that I live in now and I borrowed money from family with a promissory note and used the house for collateral. I lived in Arizona and I wanted to know if my family member can file a lien against the property. If so, how would I go about starting the lien process?

A promissory note IS a lien. All they have to do is register it with the county.

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Originally Posted by ScottGem

A promissory note IS a lien. All they have to do is register it with the county.

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No, typically a note, by itself, is unsecured. If you will give them a mortgage or other security instrument, they can record that.

In my experience a "promissory note ...used the house for collateral" is considered a lien on the property used for collateral.

Does the note say that it is against or using the property for collateral.

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Originally Posted by jcdeperalta

... i wanted to know if my family member can file a lien against the property. if so, how would i go about starting the lien process?

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If OP actually wants the family member's loan to be secured, the family member should be advised to obtain legal counsel in Arizona.

If, on the other hand, OP simply wants to have the family member believe that he or she is protected, do whatever sounds good. Then, when OP defaults on the loan, or files for bankruptcy protection, the family member may very well be left holding the bag. And nobody should feel sorry for the family member in that eventuality.