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Jose purchased a vacant lot from Sandy where he wanted to build a home. The purchase price was $ 6 5 , 0 0 0
Jose purchased a vacant lot from Sandy where he wanted to build a home. The purchase price was $ Jose put $ down and Sandy carried a $ loan on a year promissory note secured by a first deed of trust on the lot. Jose can obtain a construction loan of $ from a local lender, but only if the construction loan can be in first position. Motivated by the possibility of getting paid off sooner once the home is finished and has to be refinanced with permanent financing, Sandy agreed to subordinate her land loan to second position and allow the construction loan to be secured by a first deed of trust.In subordinating the land loan, should Sandy have any concerns about being paid off? If so how might she better protect her lien?
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