There's so much to consider when purchasing or selling real estate. Furthermore house buyers need to think about location, price, features, along with other interests, but a lien on Florida properties can make it difficult to sell later on and can be costly to resolve. You have to those seeking to sell a Florida home having a lien on the property. The process is not even close to easy, and also the details can definitely go overlooked and become misunderstood. The fact of the matter is that a lien on a Florida home is going to make things complicated, and it is best to inform yourself from the beginning so that you can make informed choices along the way.
Here's how to get when there is a lien in your yard.
What Is a Lien in Real Estate?
A lien is one of those real estate and homeowner terms most people have heard, but few understand. Anytime a lien is mentioned in property ownership, it is a claim against the homeowner's rights to some property. If your lien is on a house, the creditor who holds a debt related to the house is holding a stake in your home to help collect debts owed by the house owner. In most cases, a lien can occur in 2 ways.
Firstly, homeowners can agree to a lien, much like they accept a mortgage. In cases like this, an agreement gets written with the creditor to carry a piece of the value of a property until debts can be returned. In these cases, the title and homeowner's rights towards the home aren't in danger. Typically, it's just a way to help settle debts which involves probably the most comprehensive path forward to repayment.
An involuntary lien is also possible, which isn't consented to through the homeowner. In these instances, something similar to a tax bill or renovation goes unpaid, along with a creditor places a lien on the home until they get their money. When this happens, you can't sell a property easily because public records will make it easy for your customers to determine that you have a lien around the property.
An Example of When an Involuntary Lien Might Occur
For clarity, consider an example.
A homeowner decides to obtain a garage built onto their house. The operation is going smoothly, but as as it happens, the homeowner doesn't have the money to cover the expense of the addition. Before the garage contractor pays, they can place a lien on the house to ensure they hold some claim that they can their owed money. Now, it's as much as the homeowner and debt holder to pay off the lien. So, how can they are doing it?
When Does a Lien Disappear?
Basically, a lien is a creditor's way to show that until they're paid, they've some right to a portion of the home. Once the creditor is paid, they can take away the lien. However, this doesn't always happen. And if the lien proceeds the loan-despite the debt being paid-it can make it hard for a homeowner to sell their home. It's crucial the lien gets taken off the record.
What Does it Decide to try Resolve a Lien in public places Records?
A lien sits around the public record and it is often ignored by most creditors. When government holders like the IRS receive money back for their bill, they automatically provide you with the lien release papers. Usually, you receive those papers within two months of the final payment.
In the case of involuntary liens, most creditors don't remember or actively look for to supply homeowners with lien release papers. To a lot of of them, once the debts are paid, they're fine to move on. Unfortunately, you are going to want that from the record, so they're going to have to be notified by the homeowner to sign a lien release.
In a lot of cases, the lien process is something many creditors in an involuntary lien get frustrated with. Because of this, they might not rush to get you what you need from pure dismissal. To avert this, many property ownership experts suggest getting lien release papers signed before final payment to an involuntary lien creditor.
Once the papers are signed, they must be notarized for the county to release the title of its lien. Bank notaries can sign these release forms, and then the homeowner must submit the papers towards the county recorder's office. Then, and just then, may be the lien officially from the property.
Does Title Insurance Protect Property Owners Against a Lien?
While mortgage insurance might help protect a lender if a homeowner defaults, so what can a house owner do in order to protect themselves against a lien?
Purchasing a title insurance policy might help. The policy manager for the insurance company reviews the title's claims, and then can offer a policy for that owner. If your lien is placed around the property, the insurance coverage protects against unfounded liens. Included in this are things like heirs or states the home via familial relations, errors in the shopping process, or forgery. Through this sort of title insurance, something that has took place yesteryear won't fall around the homeowner's shoulders. However, it's not going to do anything against valid lien claims.
Who Can Help Solve Lien Issues?
If you are in the process of handling a lien issue in your yard, then your team at the Associates Home Loan of Florida are here to help.
The smartest thing that you can do when pressed with the complications of the homeowner lien would be to turn right to professionals. For Florida homeowners, there is nobody more qualified or excited to help you through the homebuying process, lien or no lien. As experts on mortgage questions big and small, Associates Home Loan of Florida is waiting to help you over the telephone or online.
Ready to find out more? Call (813) 328-3632.