Liens

General Real Estate Investing
1

Hello,

I’m new to investing in real estate. I received a call from these people who interested in selling their house. The house is owned by two friends. One of them has medical bills exceeding $100k. I owe $140 on the house and with some touch up and can sell it for about $300k (I’m in California). The problem is that there is a chance that the house has liens from the medical bills. Is it worth it? Can I have them remove the liens? if there are any. I have is in fair condition.

Please advise. Thanks.

2

You seem to be asking 2 different questions. First should you sell your house for $300k and second how do you know if the house you are about to buy has leins on it.

The answer to should you sell your house is yes. (in general if a person asks they really want to it is just the details that get in the way).

The second question is you need is a title search. There are 2 unmarried (to each other) owners and medical bills. Do a title search and make sure you get title insurance when you buy their house.

3

I’m sorry, I meant to say that they owe about $140K. If the house has lien from the medical bill, is it worth persuing? If yes, how can I remove the liens. They are behind on mortgage payment almost three months.

4

If the house has lien from the medical bill, is it worth persuing?

I’m not exactly sure where these types of leins fall, but I would htink they are in junior position. I believe “weed” leins, et al, are first followed by property taxes, IRS, other government, then lenders in significant order, and then everything else. So, if the lender were to foreclose, the medical lien may get wiped out (someone with more knowledge will hopefully chime in). If this is the case, you could always inquire to the holder of the lien in getting it reduced as they may not get anything anyway.