A Lien is an encumbrance against the property, which may be voluntary or involuntary. There are many different kinds of liens, including a tax lien (for unpaid federal, state, or real estate taxes), a judgment lien (for monetary judgments by a court of law), a mortgage lien (when you take out a mortgage), and a mechanic’s lien (for work done by a contractor on the property that has not been paid for). Learn more here about different kinds of liens.
IRS Liens And Loan Prospects
Most lenders will run a lien check from the IRS. Lenders require the lien to be paid off prior to lending you any money. The IRS has first dibs, even before a mortgage lender, to any proceeds available when you sell your home.
A Mechanics’ Lien Haunts Homeowner
A mechanics' lien was placed on a homeowner many years ago. Even though he does not own the property any more, this lien continues to reappear in other real estate transactions. Sam suggest going to the courthouse in the county in which the original court case was filed and, perhaps, if they have a computer system available to the public, you can view the records of your case and determine if they have continued to renew the judgment against you, or not.
Credit Report Contains Liens, Bankruptcies And More
What can you find in your credit report? A credit report lists both good and bad credit items such as credit cards, liens and bankruptcies. Learn what bad credit items are and how to fix them on your credit report. If you don't understand something on your credit report an accountant may be able to help you.
Don’t Sign Anything You Don’t Understand
A daughter is worried she signed onto her mother's mortgage loan when she refinanced several years ago. Not being sure what she signed, it's possible she became a co-borrower on the mortgage loan. Not knowing if she has a mortgage loan on her credit report is a good example of why you should never sign anything without understanding what it is.
Keeping Your Home Out Of Foreclosure
Although it may seem that lenders are quick to foreclose on a home, mortgage experts say foreclosure is an expensive, time-consuming process for lenders. If you are in danger of not making a payment to your lender, or if you are struggling to pay all of your bills, there are some ways you can avoid foreclosure and work out a different payment plan with your lender. The most important thing you can do is not avoid the problem; take action on your situation.
Co-Signing Mortgage Loan Means You’re Responsible
What should you do if a friend wants you to co-sign a loan? Is there a way to co-sign a mortgage loan and not be financially responsible if your friend can't make the mortgage payments? There's no way for you to co-sign a loan for your friend and not be fully responsible if the debt goes bad.
Title Insurance May Protect Lender And Buyer
When you're buying a home your lender will likely ask you to buy title insurance. Title insurance covers the cost of a title search to make sure you have a clear title. Title insurance protects the lender in case it's later discovered that there's a problem with the title. When you're buying a home, it's a good idea to get an owner's title insurance policy too to protect you.