How do you word a contract for a personal loan that is to be considered a second mortgage?

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Answer

Honestly? Spend the money to have an attorney do it right. You will probably screw it up. I see it happen all the time. Look at the amount you are loaning. If you cannot spend 10-20% to hire someone who knows what they are doing, you shouldn't be loaning the money.

The key is not the wording of the agreement. What gives a mortgage its main effect is recording with county's recorders office. You have to give notice and put all other potential lienholders on notice that you have a mortgage.

First answer by Essouthward. Last edit by Essouthward. Contributor trust: 71 [recommend contributor recommended]. Question popularity: 31 [recommend question].