The refusal can be viewed as a breach of contract; this allows the buyer to cancel the sale without losing the earnest money deposit. Or, the buyer can accept financial responsibility for any liens to move the transaction along. In a cash transaction, the buyer and the seller are free to come to a resolution on their own terms.
HOW CREDITORS COLLECT ON LIENS
A lien holder doesn’t obtain any ownership or hold the property title. However, a lien holder is granted certain rights regarding the property—namely, a share in the sales proceeds if the loan isn’t paid off and the property is sold. Lien holders generally can’t place themselves on to the title to obtain ownership. The main right of a lien holder is to have priorities from the proceeds of a sale if there is a default on payments or a foreclosure. In practice, only in rare circumstances do creditors demand the sale or foreclosure of property to pay off a lien. If a property is mortgaged, the creditor-lien holder, on enforcing foreclosure, must stay on schedule with mortgage repayment. Creditors favor waiting for the property to sell.
WHAT TO DO IF A LIEN IS FILED ON YOUR PROPERTY
In the event a seller first discovers a lien filed on owned property when preparing to sell the home, the first step is to determine if the lien genuinely belongs to him. Lien holds are searched by owner name. Sometimes multiple matches
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