Property Lien – What Are Property Liens?
How Do Property Liens Affect Real Estate Investing? Here’s A Quick Explanation of How a Property Lien Works…
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on real estate Liens.
Real Estate Liens – Defined
– A lien is a legal claim on a property by a lender or other entity that is owed money by the owner of the property.
– The lien secures the property as collateral against any money or services owed to another person or entity until it is paid off.
– Most common lien you may be familiar with is the mortgage (consensual lien)
– Usually the mortgage is in first priority, and all other liens will be considered junior liens, and are prioritized based on the date they are filed.
– Other common liens – Tax liens (can invest in this), construction lien, judgment lien, “landscaping” liens
Typical for Mortgage companies to require a title search before closing on a home sale. If a title search turns up with outstanding liens against the property, the mortgage company can refuse to finance the home purchase.
Check for Property Liens
– Once recorded, liens are a matter of public record
– Check county recorder, clerk, or assessors online – all you need is the property owner or address
– Work with a local real estate agent who specializes in foreclosures
– Ask a real estate attorney
– Ask the title company
Property Lien Removal
– Locate and find the lien holder
– Negotiate a settlement – with or without an attorney
– Pay for it yourself
– Use it for negotiation
– Simplifies the sale process – clear title
– Lien paid off – certificate of release
– Some liens have expiration dates – federal tax liens are only valid for ten years
– Properties at auctions – most states junior liens are wiped clean
– Tax Liens – common interest for investors – http://www.youtube.com/watch?v=St17i8I_6xM
Before investing in any type of real estate, it is a necessary due diligence to check if the title is clear. Any liens placed on a property can and will delay closings, which could ultimately ruin a deal. Depending on the severity and cost of the lien, typically for new real estate investors, we suggest working with properties with clear title for your first few deals.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.
Watch This Video on REIClub.com:
https://reiclub.com/real-estate-videos/property-liens/
================================================
🔔 Subscribe for more videos like this:
https://www.youtube.com/reiclub?sub_confirmation=1
FREE RESOURCES FOR YOU
================================================
📝 Seller Forms Package: https://reiclub.com/free-seller-forms/
📝 Contractor Cheat Sheet: https://reiclub.com/contractor-cheat-sheet/
📖 “Think And Grow Rich” Book: https://reiclub.com/think-and-grow-rich-ebook/
📖 Other Real Estate Books: https://www.amazon.com/William-Johnson/e/B009GPD462
REICLUB SOCIAL SITES
================================================
👥 Facebook: https://www.facebook.com/reiclub
👥 Facebook Group (Unemployables): https://www.facebook.com/groups/unemployables
🐦 Twitter: https://twitter.com/reiclub
📸 Instagram: https://www.instagram.com/reiclub/
#reiclub #unemployables #onedealaway #realestateinvesting
http://www.youtube.com/watch?v=NPzPmBOJD1k
source