Are you looking for the term “ Property Lien”? OR “ Can a lien against property stop the sale”? If you want to sell your home and you must be aware of property liens and how it can affect your sale and what about if your property has some claim against it. There are so many home sellers initiate the sale process without caring about property liens which might sometimes wind up hitting roadblocks to their scale. So first of all what is alien? It is a recorded claim where you have to pay money you owe before selling the house properly. It is also considered as an encumbrance against the property. It needs to be corrected before the sale can take place.
The form of insurance, The Massachusetts declaration of homestead which protects the equity in your property up to $500,000. In case, you are sued then that amount of the equity cannot be touched by alien and it will levy on the sale’s execution. So here homestead act protects you from creditors but lien against your property can foreclose if you don’t have a declaration of homestead. In this case, they can even auction your house to get the money you borrow from them. So homestead protection is one of the best insurance policies a buyer can have while buying a house.
Yeah, Property Lien is one of the common types of encumbrance homeowners deal with. If you have a mortgage to buy a home, the lender can even put a lien on the property and expects you to pay off your mortgage before selling the house and it will really make a sense. In the standard sale of the home, the lender is one who gets first partly paid from the money delivered by the buyer. Once the mortgage is addressed, all payment goes to the owner itself.
Once all the procedure of the sale is done, the attorney representing the lender is supposed to discharge the mortgage. People have been selling real estate over the many years and what they have seen that there are several occasions where a lawyer has not done their job and released the mortgage. The first question comes on your mind once the sale is done then what happens next? You would be hundred percent correct if you think this comes up in a title search. All the mess happened would be cleaned by the attorneys involved in the current sale. To continue the sale, the mortgage lien needs to be discharged. And the lender even allows you to move forward with foreclosure and the seizure of the property if you stop paying your mortgage.
If you want to sell your home then it is very important to disclose if you know there is any property lien that will prevent the sale from happening. So I hope the above information would definitely help you to know about property lien and how it can affect your sale.