Legal Question in Real Estate Law in Virginia

Real Esate Issue

Someone loaned me $100,000 as a down payment on a home. The loan is secured by a note but I never filed the document at the courthouse against the property. The property is about to be foreclosed on -- with negative equity in the home (I owe more than the current value of the home). Do I still owe the $100,000?


Asked on 3/10/07, 6:15 pm

3 Answers from Attorneys
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: Real Esate Issue

Probably. The recording secures payment of the note with the property. The fact that there may be negative equity would not extinguish any personal obligation to repay.

You may want to consider discussing this with an attorney to see what your options and risks might be.

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Answered on 3/10/07, 6:23 pm
Tiziana Ventimiglia Tiziana Ventimiglia, Attorney at Law

Re: Real Esate Issue

Absolutely YES: YOU STILL OWE THE $100,0O0.

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Answered on 3/10/07, 8:07 pm
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Real Esate Issue

Why, of course, you would still owe what you borrwed if you haven't yet paid it back, and the fact that what you borrowed it for (the property) was apparently a bad investment which now shows negative equity, is utterly irrelevant with respect to your continuing obligation with respect to this particular note.

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Answered on 3/10/07, 8:12 pm


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