Legal Question in Real Estate Law in New York
second mortgage
I have to borrow to pay my ex husband to buy out the house in a divorce settlement. I am borrowing from my father - now the family want me to sign a second mortgage legal document and a promissory note - how binding is this. What if I don't file it in the courts - if I don't want to sign it and I did already can I get out of the agreement to borrow the money.
2 Answers from Attorneys
Re: second mortgage
Noone can make you sign anything. If they gave you the money it is on a oral agreement. They want to protect themselves after the fact. I would not sign it if you do not want to.
Re: second mortgage
Money given in exchange for a promissory note and second mortgage is legal. The promissory note is the obligation to pay money. The second mortgage is the lien on the property to insure payment. Failure to pay under the terms of the promissory note will give your father the right to sell the house to recapture lost payment.
If you already signed the promissory note and mortgage, and depending on the language in the note, you may be able to satisfy the note by making immediate payment in full. Once the promissory note is paid in full, by law the mortgage must also be satisfied.
Otherwise, unless the note is forgiven (a gift), you cannot "get out of the agreement to borrow the money."
Mike.
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