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If you purchase property that is subject to a lien then you will be responsible for paying the lien. The lien holder should be paid before any proceeds are paid over to the seller. If you choose to ignore the lien holder's claim on the property and the lien holder discovers the sale,generally, they can request execution and the property will be seized by the sheriff and sold. Remember that a judgment lien grows larger every day it isn't paid due to post judgment interest and other costs. In Massachusetts the interest rate is 12%.

If you need to borrow funds to purchase the property the lender will insist the lien be paid and the amount will be added to the amount you borrow.

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13y ago

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Related Questions

Can you buy insurance to safeguard your property from a future lien?

No. A future lien is not insurable. You can use legal maneuvers to shield your property from future liens.


What is a lien on real estate?

When property taxes go unpaid, the city holds an annual auction offering individuals looking to buy investment property to purchases as many tax liens as they want. When you purchase a lien, you are not fully purchasing the property. You just paying the property owner's taxes and getting the lien certificate.If the property owner will not pay the tax within the given time, then lien holder can foreclose on the property. If you want to know how to buy tax lien properties visit realestatetaxliennetwork.com


If a propery deed is transferred and it has a lien on it who is responsible for paying the lien?

The lien doesn't go away. It is still a debt against the person named in the lien and the property is subject to the lien. The creditor could have the property seized and sold depending on the circumstances. The new owner would have to pay the lien to redeem the property or lose the land and any money they paid over to the seller when the land was transferred. That's why you should always have the title examined by a professional before you buy. Any liens that are disclosed by the title examination should be cleared up before you take title.


Can you sell off acreage if it is on a lien I own 40 acres the house is on 20 acres and the other 20 acres is plotted ready to sell can I sell off the 20 acres?

The property is subject to a lien. The question isn't whether you can sell it. The problem is that the buyer won't buy the property as long as there's a lien on it. Your attorney will need to negotiate a partial release or a full release with the lienholder if you will pay off the lien, or half of the lien, out of the proceeds from the sale of the 20 acres. If you don't pay the lien in full and the lienholder agrees to a partial payment then the lien will still be an encumbrance on your remaining property.


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 you sell your own property while there is a lien on it?

The creditor must be paid at the time of the closing. Therefore, when you take title, the property will no longer be subject to the lien. Clearing liens is the responsibility of the closing attorney. It is the reason a prudent attorney (and a prudent buyer) makes certain a comprehensive title examination is performed prior to the closing.


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".


Can you sell property if you bought the same property off some one who has a civil suit against him?

As long as there is no lien on the property you can. If the civil suit is pending, then no judgment lien has attached to the property and you can buy it free and clear. If the civil suit relates directly to the property, the plaintiff may have put a lis pendens on it which is a type of pre-judgment lien that is permitted in some cases when the lawsuit is over the property itself. In addition, if the suit is for work done on the house by a contractor, there may be a mechanics' lien on the property. This is another pre-judgment lien that is permitted. In any event, if the civil suit is merely an action on a debt or a tort, the mere pendency of a civil suit does not create a lien on the property. Absent a lis pendens or mechanic's lien, the property may be purchased from the defendant and sold.


Can current homeowner's liens on the property be transfer to a buyer after the escrow has been closed?

Absolutely. That is one reason it is important to have a title search done prior to closing, and to have the SELLER take care of any outstanding liens before you purchase the property. Otherwise, in theory, the holder of the lien could seek a judgment against the property, seize it, and sell it to satisfy the outstanding debt. This is what is called a "cloud on title" and is almost always in the contract as a valid reason for the buyer to stop the purchase process. Depending on circumstances, the buyer may walk away (with no loss), agree to satisfy the lien himself (reducing the sale price accordingly), buy the property subject to the lien (taking the risk of defending the property), or give the seller some limited time in which to take care of it.


How can you buy a house after it has been foreclosed and not sold at auction?

You can contact the lender or lien holder who foreclosed on the property and make your offer to them.


Can a home be refinanced in the husband's name only to pay-off the wife's bankruptcy so they can buy a new home?

If the property is jointly titled it would have to be retitled according to state statutes. If a lien has been placed against the property the property cannot be retitled, sold, or refinanced until the lien is satisfied.


Does a deferred student loan show up as a lien on a title opinion search when buying property?

You can buy property but if you should ever sell the home the lien will take it part of the money you need to pay and you would get the balance. As far a your student loan that is not a lien. you will have to give up your Income Tax to the person you need to pay until the payment is paid in full.