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If you have a lien on 1 property will affect the purchase of a new property?
Wiki User
∙ 14y ago
Yes it very well CAN. Will is a strong word.....
First it can depend on the kind of lien: judgment lien for non-payment of some bill or sum that is against the owner of property currently owned who needs to borrow money to buy the new property? Well, then the lender for the new property may deny the loan because you have an outstanding debt and taken together with other negative credit points may make you just a bad credit risk, or if this is an oddball matter may make you pay off that lien before agreeing to any new loan with you. If it's just a first mortgage lien it still can because if you need a loan for the new property the new lender will take the amount of the existing debt obligation into account in underwriting a new loan for the new property.
Second it can depend on whether a lender for the new property insists that the existing property be added to the new loan as additional collateral and whether the lien can be "insured over". For example say the lien on the existing property is for home repairs that you think are defective and are in a battle with the contractor over, and the contractor filed the lien and is proceeding with a lawsuit to enforce the lien and even filed a "lis pendens" which is notice that a lawsuit has begun. In this case you may be able to post what is called a "title indemnity fund" ("TI") equal to 1.5 - 2 x the amount claimed, with the title company, pending a judgment in the lien enforcement suit. Or if it's an old enough lien that no longer can be enforced, you may be able to get the title company to assume the risk for a nominal premium and "endorse over" the problem or even "waive" it off, at least to protect the new lender.
There are other ways it can affect the purchase, even if you are buying for cash, because a buyer may want to know you are able to close and this may come up on a credit check. But for the moment the above should provide some red flags for you if you are the property owner with the lien on it.
Wiki User
∙ 14y ago
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Can a HOA put a lien on a house for non payment of dues when HOA papers weren't signed?
A lien clouds title to a property, which means that the property owner may not successfully transfer title to another owner until the lien is satisfied. As buyer, you are entitled to a 'clean title' to the property. The association may not file a lien against a new buyer upon purchase, since the new buyer is not obligated to pay assessments until the date of purchase and beyond.
If you have a lien placed on your house does this mean you can't refinance your mortgage OR buy a new home until that lien is removed?
The lien doesn't usually affect after-acquired property unless it's an income tax lien. You cannot mortgage, refinance or sell the property against which the lien was recorded. That is exactly the purpose of recording a lien in the land records.
Can a lien hinder the transfer of land title?
If there is an existing lien on your property you can transfer the property to a new owner but the land is still subject to the lien. The new owner would have to pay the lien. Take care if the lien is a mortgage. In most cases the transfer of a property encumbered by a mortgage will trigger an immediate demand to pay off the mortgage. A property tax lien for delinquent taxes gives the town legal title to the property. You should also make sure your grantee is aware of the lien as it may have a detrimental affect on their use, enjoyment or continued possession of the property. Especially if a title examination will not be performed.
Can a lien be placed on house after it is put up for sale?
Yes. A lien can be recorded against real property right up until the moment the new deed is recorded transferring the property to the new owner.Yes. A lien can be recorded against real property right up until the moment the new deed is recorded transferring the property to the new owner.Yes. A lien can be recorded against real property right up until the moment the new deed is recorded transferring the property to the new owner.Yes. A lien can be recorded against real property right up until the moment the new deed is recorded transferring the property to the new owner.
Can a person in Illinois file a property lien on a persons property in Tennessee for money owed?
Sure, but the creditor would have to place that lien on the debtor in Tennessee. It might even be necessary to file the lien in the county where the debtor lives, or where the property is (if it is different than the debtor's residence). Keep in mind that lenders do this all the time for automobiles; GMAC is headquartered in Detroit, Michigan, but if you live in New Mexico and borrow from them to purchase a car, the lien will be files in New Mexico not Michigan.
Are you responsible for someone elses lien on your new house?
Yes. If you purchased a home with a lien on it you are responsible for paying the lien. That's the purpose behind recording a lien in the land records: to notify potential buyers that there is a lien against the property that must be paid off by the owner. That is the reason you should always have an attorney represent you in the purchase of real property. The attorney will order a title examination that will disclose any outstanding encumbrances, including liens.Yes. If you purchased a home with a lien on it you are responsible for paying the lien. That's the purpose behind recording a lien in the land records: to notify potential buyers that there is a lien against the property that must be paid off by the owner. That is the reason you should always have an attorney represent you in the purchase of real property. The attorney will order a title examination that will disclose any outstanding encumbrances, including liens.Yes. If you purchased a home with a lien on it you are responsible for paying the lien. That's the purpose behind recording a lien in the land records: to notify potential buyers that there is a lien against the property that must be paid off by the owner. That is the reason you should always have an attorney represent you in the purchase of real property. The attorney will order a title examination that will disclose any outstanding encumbrances, including liens.Yes. If you purchased a home with a lien on it you are responsible for paying the lien. That's the purpose behind recording a lien in the land records: to notify potential buyers that there is a lien against the property that must be paid off by the owner. That is the reason you should always have an attorney represent you in the purchase of real property. The attorney will order a title examination that will disclose any outstanding encumbrances, including liens.
How do you determine the priority of one mortgage and charge over the other?
Liens on real property are prioritized according to the time of their recording in the land records. In some cases a senior lien holder will agree to subordinate their lien to a new lien, by a recorded instrument, allowing the new lienor to take priority.Liens on real property are prioritized according to the time of their recording in the land records. In some cases a senior lien holder will agree to subordinate their lien to a new lien, by a recorded instrument, allowing the new lienor to take priority.Liens on real property are prioritized according to the time of their recording in the land records. In some cases a senior lien holder will agree to subordinate their lien to a new lien, by a recorded instrument, allowing the new lienor to take priority.Liens on real property are prioritized according to the time of their recording in the land records. In some cases a senior lien holder will agree to subordinate their lien to a new lien, by a recorded instrument, allowing the new lienor to take priority.
Does a lien on property mean it has to be sold in California?
A lien is paid out when the property is sold. It will come out of the proceeds paid to the seller for his recorded lien before a clear title can be issued to the new buyer. Otherwise, it just sits there as a matter of record.However, if the lien is large enough to be worth the trouble of foreclosing on it, the creditor may force the sale of the property to pay the lien.
If you have lien judgment in 2005 but buy property in 2006 can they put a lien on that new property?
Yes, they sure can. Check with your state for the statute of limitations, but mainly, its six years. And if they revive the judgment, it can go another six years.AnswerYou need to provide more details. The answer may vary from state to state. If the lien was recorded in the land records before you purchased property it cannot affect after-acquired property in Massachusetts. It affects only the property owned by the debtor at the time of the recording. That is stated on the face of the execution.There are other types of liens that can affect "after-acquired" property, typically, federal and state tax liens. Therefore you need to check the laws in your state.
How long is a property lien for in New Mexico?
The lien stays with the property until it is paid. You cannot sell a car or a house, for instance, until the lien is paid and you have clear title. Usually the lien on a house is paid for at closing, either from the proceeds of the sale or money that you bring to the table.
Does Homeowners lien carry to the new property owner?
Yes, it belongs to the land and not the owner.
What does is mean to have a lien on ones property and tenets?
A lien is a security interest in the property. A lien might arise from a loan. If you buy a car with the bank's money the bank will put a lien on the car. If you don't pay the bank back, it can foreclose on its lien and take the car from you. If you have a roofer add a new roof to your house, and you don't pay him, the laws allow the roofer to put a lien on your house. The roofer now has a stake in the house. If you don't pay off the lien your house can be forcibly put up for sale in order to satisfy the lien. I believe "property and tenets" translates into modern speak as "property and belongings".
