Miami, FL asked in Consumer Law and Banking for Florida

Q: I am considering a consumer loan to renovate a house that I own. I am told I have to deed my house to the business and

I must make a statement that I do not intend to make this house my personal residence. This is an interest only loan for 1 year. When I pay this loan off are the terms still valid?

Related Topics:
1 Lawyer Answer
Terrence H Thorgaard
Terrence H Thorgaard
  • Business Law Lawyer
  • Freeeport, FL
  • Licensed in Florida

A: I suspect that the statement they want you to sign is to protect the lender from your later claiming the property as your homestead. If you default and they have to sue you and get a judgment against you, a claim of homestead would make it difficult to levy upon the property in order to collect such a judgment. So, once the loan is paid off, the purpose of the statement would have been served. You might, to be totally truthful, give them such a statement indicating that you don't intend to make it your personal residence for the life of the loan.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.