How to Find out If a Property has a Lien
Are you looking for a new home? or do you already own a house trying to sell? then you may know that a property has a lien placed on it. A lien on a house is a legal claim that is against your property. This will give creditors a stake in your real estate and a way to collect debts owed to them. You should learn how to handle a lien on your property, use the below tips.
Why might there be a lien on a property?
A lien is placed on a property when money is owed to someone either it can be private parties or the government. If money is owed on your property, the parties will intimate your mortgage lender and the property owner to inform them that there is a balance amount to be paid.
If you’re a homeowner, a lien on your property will not be a huge surprise for you, placing a lien on a property is a legal procedure. If you fail to pay any bill or tax, then it may result in a lien. Even after losing in court, you have not paid the debt then a lien can be placed on your property.
How do I find out if a property has a lien on it?
There are many ways to find out if there is a lien on a property.
Ask your title company
Title companies are great allies, they will ensure that there are no liens on their property by completely hiding the home owner’s history. If you’ve discovered a lien, the title company will help you know and resolve the issue. It also issues insurance. Thus protecting buyers from the potential future costs of unforeseen title defects.
Go to your county courthouse or recorder
If you want to talk to someone about a lien, this is a great option. If you have any queries, do not be afraid to ask them – just feel free to ask your doubts.
Look up your property online through the county recorder or clerk
In many jurisdictions you can look up your property online through the recorders or clerk’s office and check for liens. This is one of the fastest ways to find out this information, sometimes the database does not have the information you need. Without going to any offices you will be able to collect any and all necessary information.
What happens if a lien is discovered?
If the property that you’ve looked up to buy has a lien on it or filed against it,then your mortgage lender will assure you that it will be cleared up before or during closing. The liens must be cleared before issuing the title insurance.
The main purpose of title insurance is to protect the lender against loss from liens which were not detected before closing. The owner’s title insurance does the same for the new owner. Popular title companies might have gone through a lot of home buying processes which will help them know whether the seller has cleared all the liens before their property is sold.