Note (Secured)

Notes are “secured” by the recordation of the loan in a document known as a mortgage or a deed of trust. These documents are recorded as being liens against the property. The purpose of recording these liens is twofold. First, they establish the priority of the lien, and second, they put the public on notice that the lien exists. In this manner, a prospective lender can determine the potential priority of lien of any proposed financing. A typical condition of any loan commitment is the payment in full and discharge of any and all prior liens before, or simultaneous with, the recordation of the new loan.