I’m getting into tax deeds sales. I know some properties may have liens on them. I know of a few lien i need to look out for. Gov. liens, state liens, and city liens. Are there any other liens i need to know about. and how would i go about finding them?
jarci
Just about anybody can place a lien against a property. Common liens include (obiously) mortgages (1st, 2nd, etc.), mechanics liens, tax liens, HOA liens, etc.
True liens will be filed against the property and can be discovered through a title search.
Keith
thank u Keith. what about if a lien was placed on a house in 1996 but the owner paid off the mortage in 2002… would this lein be satisified???
You should check with your attorney but most states have statutes that cause a lien to expire after a certain period of time, unless they are renewed. You need to check on the statutes in your location.
I believe that you would want to check the local property tax records office and do a title search like Keith said. That should give you both the recording of the lien and the recording of the satisfaction of lien, when it was paid off.
Not necessarily. For instance, I could have a $50K mortgage on a property and have a plumber that did some work on the property place a $10K mechanic’s lien on the property to get paid for his work. Then, I win $100K on a “scratch and sniff” lottery ticket and use half the money to pay off the mortgage. There would still be a mechanic’s lien on the property even though the mortgage had been satisfied.
A good title search would reveal any/all liens against the property.
Keith