Lien on Whom in Cincinnati Real Estate?
September 24th, 2008 categories: Cincinnati, Ohio, Real Estate Buying, Real Estate News
Thinking about bidding on a foreclosed property in Cincinnati, West Chester or Fairfield?
If you are thinking about getting a deal at a Sheriff’s Auction or by some other means- have you thoroughly researched the property prior to making a bid?
In today’s real estate market most buyers have no clue about property liens.
What is a lien?
In simple terms- a lien is ”a charge on the property to satisfy a debt or other obligation.” (Article) The mortgage is the most common form of real estate lien. In 95% of the real estate transactions in our area, buyers and sellers sign documents at the closing-then the title company files the mortgage note (lien) at the courthouse. If you purchased an Owner’s Policy of Title Insurance at the closing, the policy helps to protect you from any prior liens that may have been missed during the title search.
Other examples of common liens are: equity loans, 2nd mortgages, home owner association dues and, of course, federal and state taxes. (there are several other types of liens too)
Foreclosed properties often have a variety of liens and many buyers unwittingly assume once the first mortgage holder is paid- the job is done.
So if you are thinking about bidding on a foreclosed property and don’t how to conduct a thorough title search at the courthouse -contact a title company (or call your realtor to get the name of contact) to ensure you aren’t bidding on a “lien machine”.
There are deals to be made in this real estate market- remember to take the time to investigate before making a bid.
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