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 will return from a search. Relatives who share similar names or those with unusually common names (e.g., Smith or Jones) might find themselves asked about liens they didn’t incur. In this case, you should work with your real estate agent and title company to determine what proof is needed to clear the issue. Generally, all it takes is something as simple as a verification of your birth date or home address. If, however, you’re the seller and the lien is appropriately on your property, work to resolve the issue as soon as possible. Contact the lien holder and arrange how to pay it off. Often, the repayment will come out of the proceeds of the sale of the house.
For particularly complicated liens, you might seek legal counsel.
10
Powered by FlippingBook