A significant hurdle that needs to be dealt with when exploring properties for sale is the possibility of a lien as they can affect the ability to sell a property and must be resolved in order to proceed with any potential investing plans.
To provide a basic definition, a lien is a monetary claim by an individual or a corporation that prohibits the sale of the property until the person or company collects their payments. These liens may be voluntary (i.e.: a conventional mortgage) or involuntary, such as an unpaid tax bill.
One simple way to find out if a property has a lien is to use online resources and search county or clerk records for the owner’s name or the property address. You may also wish to physically visit one of these places if circumstances allow. Contacting the title company is another worthwhile option to consider.
Usually, a voluntary lien would have no effect on the title. At the closing table, the seller’s debt is paid off, and the lien is removed during the closing process.
Involuntary obligations such as tax or IRS obligations will immediately give you a lien release until the debt is paid off.
This update is by hard money lenders Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on Broward County hard money lending, please call 954-816-0388 or fill out our application.