On May 30, 11:41*pm, "hr(bob) "
wrote:
On May 30, 10:33*pm, Pat wrote:





On May 30, 11:22*pm, "hr(bob) "
wrote:

I am giving a relative a mortgage on their home as I can get a higher
interest rate and they can get a lower interest rate than either of us
could get using a regular bank. * *I will issue annual 1099 forms so
they can claim the interest on their taxes and I will declare the
interest on my income tax. *We have all the papers drafted, etc, but
someone asked why we were bothering to plan to record the mortgage
with the county recorder.

I was surprised, I never even thought about why, just assumed that
everyone did record all mortgages. *The only reason I can see for
recording the mortgage is to let any future prospective purchasers of
the property be aware of the fact the the owners do not have a
completely clear title to the property. *What am I missing??

Bob Hofmann

There's no reason to record the mortgage. *It's a relative. *Just
trust them, what could happen? *I mean, sure they could sell it and
not repay you, but what is the price of trust? *Or they could run up a
bunch of credit card bills and have the credit card company file a
lien against the house -- so what that they would be in first position
and the only way you could retain you interest would be to buy out the
credit card company. *I mean, you'll save a couple of hundred bucks by
not filing. *And what is the likelihood that they'll have a DWI, kill
someone, and the family will sue for everything they own -- and you'll
be left high and dry. *Come on, it's family.

Oh that messy divorce. *And she claims there is no mortgage and she
wants 1/2 of the equity. *She alledges in court that the "unfiled
mortgage" is a scam.

And what is the possibility that YOU die. *Then what. *Proof? What
proof? *So you lose a few bucks.

And so what if you want to foreclose and there's no filed mortgage.
So what if, when you do try to file, the relative fights it. So what
if it clouds the mortgage for years and year. *So what?

Nah. *Just a handshake should be fine.

Yeah, but if we have a signed and witnessed document/mortgage and
promissory note, what is the advantage of having filed the mortgage vs
each of us having a signed/witnessed/notarized document??- Hide quoted text -

- Show quoted text -

Okay, one more thing .... The mortgage is for a multi-thousand dollar
amount (I assume). Meanwhile, the mortgage filing costs a few hundred
dollars -- at most. So, is there any reason you DON'T want to file
it? There has to be a reason other than just being cheap.