filing lein on home

What is the name of your state (only U.S. law)? Arizona
purchasing home for son - should I file lein? how should I proceed?

phal said:

purchasing home for son - should I file lein? how should I proceed?

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Some critical information is MISSING.
Are you purchasing the home FOR him (as a gift)?
Or are you getting a mortgage in your name... and 'reselling' to him??
What EXACTLY are you trying to do??
Will there be a mortgage on the home?

JETX said:

Some critical information is MISSING.
Are you purchasing the home FOR him (as a gift)?
Or are you getting a mortgage in your name... and 'reselling' to him??
What EXACTLY are you trying to do??
Will there be a mortgage on the home?

Click to expand...

I was planning to do a promissory note with my son - he would purchase home in his name and make monthly payments plus interest to me - my accountant suggested we do it this way

Now answer the other questions JETX asked.

phal said:

I was planning to do a promissory note with my son - he would purchase home in his name and make monthly payments plus interest to me - my accountant suggested we do it this way

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I thought all questons were answered? So I'll try again

Should I file a lein?

I would loan funds to my son - I'll do a promissory note to him and he would make monthly payments plus interest - so this is not a gift

He would purchase home in his name - cash - so no mortgage and no I'm not reselling home to him

Again - should I file a lein? or are there other alternatives for me to take for protection should something happen to him?

Take back a mortgage on the house. Just like any other lender. When he pays you back, satisfy the mortgage.

That way your investment is protected: in front of any future divorce, creditors, state tax liens, child support liens or other unforseen future adverse matters that may affect him. Your dollars come back to you BEFORE anyone else is paid.

phal said:

I was planning to do a promissory note with my son - he would purchase home in his name and make monthly payments plus interest to me - my accountant suggested we do it this way

Click to expand...

Okay, from that, it APPEARS that you will be a 'lender' to your son and finance his purchase. He would then repay you in monthly payments, just as he would any other lender.

So, with that, have your attorney draft a 'deed of trust' and the other necessary documents, assign a trustee and proceed with the loan.

deed of trust
n. a document which pledges real property to secure a loan, used instead of a mortgage in Alaska, Arizona, California, Colorado, Georgia, Idaho, Illinois, Mississippi, Missouri, Montana, North Carolina, Texas, Virginia and West Virginia. The property is deeded by the title holder (trustor) to a trustee (often a title or escrow company) which holds the title in trust for the beneficiary (the lender of the money). When the loan is fully paid, the trustor requests the trustee to return the title by reconveyance. If the loan becomes delinquent the beneficiary can file a notice of default and, if the loan is not brought current, can demand that the trustee begin foreclosure on the property so that the beneficiary may either be paid or obtain title.