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Can he take my home for a $25k promissory note

I signed a Promissory note for a loan $25k. To get house in condition to sell. The house didnt sell and the guy put a lien on my home and now is demanding i sign over the house to him to settle the debt and has filed a forclosure on loan. If i refinance my home in Kansas and mortgage company pays off the lien, can the lien holder still foreclose on the loan? What happens with the lien foreclosure suit?

1 reply

Mar 16, 2020

Mechanics liens will not entitle the lien claimant to take possession of the house where work was performed. So, if you're referring to a mechanics lien filing, then note that there are a number of ways to resolve the matter other than signing away a property. An owner may generally make payment on the lien, bond off the lien, or even challenge the validity of the mechanics lien claim. More on how to respond to a mechanics lien here: A Mechanics Lien Was Filed on My Property – What Do I Do Now? Now, if a promissory note was signed, and if the terms of that promissory note stated that the house would be used as collateral for payment, things may get dicier. And, for help interpreting the terms of that promissory note, it'd be wise to consult a local Kansas construction attorney. With the stakes so high, it's important to make sure everything's done by the books. Regarding lien foreclosure - if the lien is satisfied, then the lien claimant will not be able to proceed with foreclosure. And, if the lien is bonded off, then a foreclosure action could be brought against the bond, but not against the house, itself. But again, for more background on the specifics of your situation, it'd be wise to consult a Kansas attorney. They'll be able to review the relevant documentation and circumstances, then advise on options for moving forward.

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