<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by intellectualhonesty:
Someone owes me money. At first they promised me a mortgage and promissory note. Now, they only want to give me a lien or a promissory note only. I heard from my neighbor that a lien has to be renewed every year and is not as good as a mortgage. I think I want to stick to my guns and get the mortgage and a promissory note I was promised instead of a lien. <HR></BLOCKQUOTE>
Both are considered encumbrances on title to propery. A mortgage can only be on real estate and is a lien but a lien may not always be a mortgage. You could be given a lien on this persons automobile for instance. For the best protection have this person give you a mortgage and record it on title. The prom note specifies the term, amount, interest rate etc. of the loan which would be secured by the mortgage given to you. Depending on the number of mortgages recorded on the real estate, you would have a numerical order position. If the real estate is free and clear you would have a first mortgage position. If there is a bank first mortgage, you would be in the second mortgage position. Hopefully the mortgage to you will be on real estate with sufficient equity to cover your mortgage.
