I am purchasing a SFH, The current owners had a buisness that failed in 2007. The property has a lien on it of about $2500, The original amount was $17000 +/-.
The owner is very cooperative and gave me copies of all the documentation (payments, current balance, etc).
My question is how do I present this to my HML when I submit my fully executed purchase contract to them. I have factored in the lien amount into my original offer and am anticipating my lender will pay it off along with the existing mortgage balance.
You should not have to pay the lien. It should come out of the money the seller receives. Say you are paying $160k for a home with a $150k mortgage. Out of the remaining $10k, the seller will need to pay off any other liens, back taxes etc. As an added protection, make sure that you have a title search run on the property or even purchase title insurance.
Hey, Thanks for the reply,
The seller is more than open to pay the lien. I was just wondering if I should somehow be redundant in documenting the payoff. Something like a copy of the lenders check (to the creditor) and a release of lien from the creditor. Then go down and file them at the courthouse.
Again, Thanks for the input
Get the best search on your property and asset and you don’t have to pay any amount for lien.