trumps all other liens in terms of priority, unless subordinated as discussed above. Mortgages are the most common type of lien; however, there are others, such as tax liens for unpaid property taxes and mechanics lien for outstanding construction contracts. Other than tax liens, liens have priority in the order of filing. For example, if you have a mortgage with Bank A from 2013 and a second mortgage with Bank B from 2015, Bank A has priority (first rights) to the property. If you satisfy Bank A’s mortgage, Bank B becomes top priority. Any future filings will be secondary to Bank B. The exception to this rule is a tax lien, which always takes priority. You can’t sell your property to buy another while valid liens are in place. Before a home is transferred from seller to buyer, it must be free of all liens, such that the buyer receives a clear title to the home. If you owe lien holders and have less equity in the house than it sells for, you might have to bring a check to the table. Once a lien is verified, you need to satisfy it to sell your property. Contact the lien holder for a payoff figure, which is the total amount owed, including interest and other charges. Paying the debt is the first half of the process of clearing a lien. The lien holder must then cancel the lien. This can take up to several months, depending on how quickly the lien holder acts and the volume at the County Clerk’s Office. To avoid problems with the purchase, contact the lien holder and request that it endorse the lien for cancellation and give it directly to you for filing. Make a copy of the document and take the original to the clerk for cancellation. With a clear title, you’re free to sell your property. Once you receive the funds from your sale, you can move forward with the new purchase. To ensure this new transaction goes smoothly, perform a lien search on the property
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