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Short Sale Process Halted Due To Tax Lien
A short sale purchase can be derailed by many issues: a lender that refuses to cooperate, a seller that refuses to submit information to his or her lender, a problem with the title to the home, a contractor lien placed on the home, and even a tax lien placed on the home. Some of these issues can be solved by putting some time and effort into resolving them. Others can only be solved with the payment of money. Where you problem will come up in a short sale purchase is unknown, but for this reader, the problem was a tax lien.
Short Sale Process Problems Arise When Contractor Liens Home
Short sales, foreclosures and other purchases of real estate can always lead to problems. One risk in buying a home in foreclosure or from a seller in a short sale is that the seller or the bank owner had work done on the property and the contractor never gets paid. The contractor, in this case a painter, then files a contractor lien on the home and the subsequent buyer may get stuck with the bill.
Contractor’s Liens and Foreclosures
Worried about contractor’s liens? When you buy a foreclosure, check to see if there are any contractor’s liens against the property that have survived the foreclosure. Often, the lender will wipe out all other subordinate liens, including contractor’s liens, in the foreclosure process. But in some cases, those liens may still exist and be valid. If you suspect there might be other liens that will be filed against the property even after you close, be sure to purchase a title insurance policy with coverage over contractor’s liens. You will want to have this insurance in place to have a title company cover the costs of litigation and the costs to remove the contractor’s liens with the purchase of the title insurance even if you bought the property after a foreclosure.
How Does Negative Information Affect Your Credit Score?
Your credit score is determined by looking at a combination of information from credit cards, available credit, payment history, and other financial information. Negative information like bankruptcies and liens can drastically lower your credit score, but the information won’t stay there forever. After a certain number of years bankruptcies and liens will stop affecting your credit score. Late payments and the amount of available credit can also strongly affect your credit score.
What Kind of Accounts are on Your Credit File?
Ever wonder what magical formula credit reporting bureaus use to figure out your credit score? It’s not random, certain accounts are on your credit file and other accounts aren’t. Things like utility payments and gambling debts aren’t on your credit history, but anything from a financial institution or court system will be on your credit file. Watch this video from Expert Real Estate Tips for more insight into what’s on your credit report and how your credit score is calculated.
Homeowners Struggling With A Second Mortgage Get Some Help
Homeowners with a second mortgage may qualify for some additional relief with the Second Lien Program under the Making Home Affordable Program.
The …
Second Mortgage Assistance Announced By Obama Administration
I find it extraordinary how much government intervention there has been into the housing market and helping homeowners. If only this would happen for …
Use Quit Claim Deed To Retain Property After Divorce
Should you add your future spouse’s name to property you bought prior to your marriage? If you add your future spouse’s name to your house deed or title, that gives your future spouse some ownership of your house. If the marriage ends in divorce, you may ask your spouse to sign a quit claim deed, but your spouse may ask to be bought out of the property in order to sign the quit claim deed. What can you do both before and after marriage to protect your property?
Bank May Put Lien On Home For Bad Auto Loan
If you fail to make payments on an auto loan it’s possible for the auto lender to try to recover the money you owe on the car in other ways. The bank can put a lien on your home if you owe them money for another debt such as an auto loan. The lien remains on the home until you repay the auto loan debt and the lien will have to be dealt with when you sell the home. Both the bank and the mortgage lender will have to be repaid for the home sale to go through.
Property Lien Destroys Home Sale
When you buy a home you hope that the title insurance company will find all liens against the property in doing the title search. When you discover a lien on your home after closing, it could unravel the sale. To protect yourself it’s critical to have the right kind of title insurance, to protect you and not just your lender.
