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Buying or Selling a Home/LIEN
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Question
i recently found out that there is a lien filed against me from my first marriage and i have been looking into buying a home. in the state of ohio will this stop me from closing on a sale and if so how can i remedy this.
thanks
Hey TREMAYNE--
When a Mortgage Loan is used to purchase a Home, the Mortgage MUST be "in the first position." that is the first lien against the Property and/or the Borrower. Closing with ANY liens against the Borrower would put the Mortgage "in a second, third or fourth, etc---position!"
All liens would have to be "cleared" before the Mortgage Loan could be closed and the Home transferred ownership to the Borrower.This isn't a "State of Ohio" thing, it's a Mortgage Lender thing and it's
a potential "Deal Breaker"!
Are you S.O.L. or can you "remedy this?" One remedy is to PAY OFF the lienholder! Another is to get the lienholder to release the lien
long enough to get your Mortgage Loan closed and then refile the lien against you AFTER you've closed the Mortgage & taken ownership of the new Home. I've seen State Agencies with liens against back child support and/or alimony, lifting their liens for the closing of a Mortgage, reestablishing & recording them afterwards and now have virtually a 2nd Mortgage on the Home, where before they just had an unsecured lien against the Individual!
Some lienholders will release the lien in favor of a Promissory Note with scheduled monthly payments--this could cause a problem, though, as the Lender would now have to consider those payments in your Debt-to-Income Ratios!
Talk to your lienholder, see what you can work out that gets the lien released--if not, you may just be S.O.L.
GOOD LUCK!
--JIM
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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