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question about promissory note

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ConfusedinOh

Guest
What is the name of your state? Ohio
I have a question about a promissory note my husband and myself are about to sign for a home we are buying from my mother in law.Since her attorney drew up the paperwork and she is paying him(not us)I am curious as to a statment he placed in the contract since I am very far from being blessed with understanding legal mumbo-jumbo stuff.The line before this sentence states that she may declare the entire debt due if we default,and do not pay for 30 continuous days,I understand this but then it goes on to say"...or in the performance or observance of any covenant or condtion contained in the mortgage securing this note(I don't understand that part??).Upon such declaration,the entire debt shall be immediately due and payable(I understand this sentence)The makers do hereby waive presentment and notice of dishonor(I don't understand this part either).
Geez,why do they have to make things so complicated!!!Any help will be appreciated.Thanks for reading
 


HomeGuru

Senior Member
ConfusedinOh said:
What is the name of your state? Ohio
I have a question about a promissory note my husband and myself are about to sign for a home we are buying from my mother in law.Since her attorney drew up the paperwork and she is paying him(not us)I am curious as to a statment he placed in the contract since I am very far from being blessed with understanding legal mumbo-jumbo stuff.The line before this sentence states that she may declare the entire debt due if we default,and do not pay for 30 continuous days,I understand this but then it goes on to say"...or in the performance or observance of any covenant or condtion contained in the mortgage securing this note(I don't understand that part??).Upon such declaration,the entire debt shall be immediately due and payable(I understand this sentence)The makers do hereby waive presentment and notice of dishonor(I don't understand this part either).
Geez,why do they have to make things so complicated!!!Any help will be appreciated.Thanks for reading

**A: EZ version- if you default on any term and condition in your mortgage, you would also be in default of the prom note.
You agree that the prom note is a valid and enforceable contract.
 

HomeGuru

Senior Member
ConfusedinOh said:
Thank you very much for your reply!

**A: the undersigned, after reading your last post in this thread on the real estate law forum of this freeadvice website, is aware of your appreciation in responding to your post and fully accepts your appreciation in a manner consistent with general and proper mannerisms and conduct normally exhibited on internet bulletin board forums such as this one.

signed,

HomeGuru

EZ version: you're welcome.
 
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ConfusedinOh

Guest
LOL...you MUST be a lawyer...it's a good thing you posted the EZ version along with the rest of your post,otherwise I would be posting that response of yours on some "freeadvice" website forum asking for that to be interpreted for those of us mentally challenged by mumbo-jumbo!
 

HomeGuru

Senior Member
ConfusedinOh said:
LOL...you MUST be a lawyer...it's a good thing you posted the EZ version along with the rest of your post,otherwise I would be posting that response of yours on some "freeadvice" website forum asking for that to be interpreted for those of us mentally challenged by mumbo-jumbo!

**A: Hahaha, I did that all in fun. You see, lawyers are also mentally challenged at times and some are on huge ego trips. They tend to use a lot of hard words and lengthy phrases that could easily be reduced to shorter easier to understand writings. Another view point is that they charge by the hour. So they take an a
hour to write something, and because you can't understand it, they need to spend another hour explaining it to you. So by making the writing far from plain language, they instantly double their pay. Don't tell anyone ok, since I'm not supposed to reveal the tricks of the trade.
 
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ConfusedinOh

Guest
You are toooo funny......your secret is safe with me!
 
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ConfusedinOh

Guest
Since you were so helpful before,I was hoping you could offer your expert opinion on another question I have,in regards to the same situation that I originally posted about.The promissory note that we are going to sign with my mother in law,is for 10 years then at that time we will need to pay off the remainder of the amount owed,if something would happen to her in that ten years and she would pass on...she states that in her will she is going to state that the promissory note is null and void and the house will become my husband and mine,free and clear.My question is that does this/or should this be stated on the promissory note as well as in her will,or is the will good enough.As of right now it is not stated on the promissory note and it would have to be redrafted by the attorney.I am hoping that her last will and testament will be good enough,just so things can progress smoothly as I have already rocked the boat several times...being the spirted one that I am :)If you can offer your opinion I would appreciate it,thanks for reading again
PS The warranty deed has been signed over to us and is in our name if that helps any
 

HomeGuru

Senior Member
ConfusedinOh said:
Since you were so helpful before,I was hoping you could offer your expert opinion on another question I have,in regards to the same situation that I originally posted about.The promissory note that we are going to sign with my mother in law,is for 10 years then at that time we will need to pay off the remainder of the amount owed,if something would happen to her in that ten years and she would pass on...she states that in her will she is going to state that the promissory note is null and void and the house will become my husband and mine,free and clear.

**A: what then happens to the bank or private mortgage secruring the property?
The property cannot be free and clear if there is a mortgage on title.
*************



My question is that does this/or should this be stated on the promissory note as well as in her will,or is the will good enough.

**A: the will would be good enough if there is only a prom note but if there is a mortgage securing the prom note, there may be probate delays/problems in getting a release if mortgage. Ideally, the "release upon death" should be referenced on all documents ie. will, mortgage and prom note to avoid any misunderstanding, ambiguity and confusion.
**********


As of right now it is not stated on the promissory note and it would have to be redrafted by the attorney.I am hoping that her last will and testament will be good enough,just so things can progress smoothly as I have already rocked the boat several times...being the spirted one that I am :)If you can offer your opinion I would appreciate it,thanks for reading again
PS The warranty deed has been signed over to us and is in our name if that helps any

**A: if a warranty deed has already been signed and recorded, you are the sole titleholder and there is no mortgage or prom note executed yet, you need not worry as the property belongs to you.
 
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ConfusedinOh

Guest
See...I knew you would be full of wonderful advice!
And,BTW...there is no private mortgage or bank securing the property,she owns the house free and clear.We are paying her a set amount for the house,monthly for 10 years,then the balance will be due to her.The reason we needed and already have the warranty deed in our name is because we took out a loan from a bank for a small amount for home improvments and we needed the house to be "in our name" for this reason.I realize that if she would expire we would still owe the bank their money,my concern was with her Promissory note and with it becoming voided upon her death and contiuning to pay monthly to someone who is no longer here on Earth,lolThanks so much again!
 

HomeGuru

Senior Member
ConfusedinOh said:
See...I knew you would be full of wonderful advice!
And,BTW...there is no private mortgage or bank securing the property,she owns the house free and clear.We are paying her a set amount for the house,monthly for 10 years,then the balance will be due to her.The reason we needed and already have the warranty deed in our name is because we took out a loan from a bank for a small amount for home improvments and we needed the house to be "in our name" for this reason.I realize that if she would expire we would still owe the bank their money,my concern was with her Promissory note and with it becoming voided upon her death and contiuning to pay monthly to someone who is no longer here on Earth,lolThanks so much again!

**A: it would be best to state the voidance of the prom note upon death on the note itself.
 
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ConfusedinOh

Guest
Hey Guru,
Were you on vacation<wink wink>,usually you reply within a day or two to my posts...4 days went by for this last post....lol.Anyways,thank you for your advice,have a good day!
 

HomeGuru

Senior Member
ConfusedinOh said:
Hey Guru,
Were you on vacation<wink wink>,usually you reply within a day or two to my posts...4 days went by for this last post....lol.Anyways,thank you for your advice,have a good day!

**A: very good reply. Four days? Was I taking a long nap, or what? Your thread got buried under all the new ones. They don't let me take vacation. I am locked inside a womb with a view with computers up the ying yang. Now what the heck is this cord for...oops, it's the umbilical. Can't unplug that one. As you guess, I only use laptops.
Oh, to answer your question, I needed to reply first to new threads that had no replies before continuing on older threads that were already responded to.
 
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ConfusedinOh

Guest
Well geez...I sure hope your"womb with a view" is padded...we wouldn't want you to get hurt in there or anything during all those long hours you spend in there replying to weirdo posters like myself,haha...see,now the psych nurse in me is coming out...talking about padded rooms and all!
And you should really see about getting a vacation...they are really very therapeutic :)
Well,I shall let you go so you can back to all your new threads that need tending to,good luck
 

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