Michigan Installments Fixed Rate Promissory Note Secured by Residential Real Estate - Michigan 2025

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A promissory note is an unsecured debt. A mortgage ties a promissory note to the deed to the property so that debt is now secured by the property as collateral. I suggest that you need to have both a promissory note and mortgage done by an attorney.
While they are very similar, the unsecured promissory note only represents the borrowers promise to pay the full amount plus interest, while a mortgage puts a lien on the real estate that allows the lender to foreclose on it in the case of nonpayment.
The property that secures a note is called collateral, which can be either real estate or personal property. A promissory note secured by collateral will need a second document. If the collateral is real property, there will be either a mortgage or a deed of trust.
Promissory notes are legally binding whether the note is secured by collateral or based only on the promise of repayment. If you lend money to someone who defaults on a promissory note and does not repay, you can legally possess any property that individual promised as collateral.
You dont need to have a witness or notary for a Michigan promissory note. However, doing so does add an extra layer of authentication.
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While all mortgage notes are promissory notes, not all promissory notes are mortgage notes. A promissory note is a legally binding, written promise from a borrower to repay a loan to their lender. A mortgage note is a document that outlines the terms of a mortgage.

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