Ask Experts Questions for FREE Help !
Ask
    bidingmytime's Avatar
    bidingmytime Posts: 92, Reputation: 13
    Junior Member
    		  
    #1

    Dec 12, 2009, 04:48 PM
    A puzzle: liens, foreclosure and responsibility
    I sell a lot to Mr.X owner finance. Mr.X make payments for a while and then stops making payments. I decide to foreclose on the property but then I find out that Ford Motor Company has put a lien on the lot because Mr.X didn't pay them either. If I foreclose on this lot, will I be responsible for the lien filed on the lot while it was in the possession of Mr.X?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #2

    Dec 12, 2009, 04:59 PM

    Did you actually owner finance or did you do a contract for deed. In case of a contract for deed you never put title ( deed) in their name, so the other company can not legally put a lien on property.

    If you did a pure owner finance, you put a first mortgage on the home, so any other lien is a second mortgage. So when you foreclose the property is sold as it is suppose to be in a foreclosure at the court house steps and any money is first paid to the first lien holder, if there is any over that amount it goes to the second.

    Many states allow you as 1st lien holder to bid the amount of your own mortgage thus if there is no higher bids, the property will go to you and the second lien holder is merely out.
    But the laws of your specific state, and the actual mortgage paper work ( what is allowed in the lien you established when you sold the property)
    bidingmytime's Avatar
    bidingmytime Posts: 92, Reputation: 13
    Junior Member
    		  
    #3

    Dec 15, 2009, 12:04 AM

    OK, thanks =o)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Responsibility of Carpet Damage [ 5 Answers ]

Hello, I live in an apt complex and recently damged the hallway carpet outside of my apt by placing a hot item on the floor and it burned through the carpet causing damage less than a square foot. I called the landlord and it was 4months before they got back to me. They sent a ltter stating...

Mechanics liens and liens against property [ 3 Answers ]

I lent my son in law $10,000 to put down payment on a home about a year and a half ago My question is how do I put a lien on the house and which state do I do it in . I'm in Calif. And the house is isn't Arizona. And do I just record it with the county or court or what?

If someone gets you a credt card as a gift what is your responsibility? [ 4 Answers ]

If someone takes out a credit card and gets you a card ,without your permission, but as A gift if you need to use it. Are you responsible for the debt if the person that takes the card out stops paying on the card?

Is it the landlords responsibility [ 3 Answers ]

This past June my husband and I signed a lease in the lease it was stated that all major appliances were in working order. Being that it was June my husband and I *wrote in that the furnace was not checked* we signed the lease, as did the landlord. NOW THE FURANCE DOES NOT WORK. Landlord was...

Tenant responsibility for lease [ 2 Answers ]

My question is, if a tenant is evicted for non payment of rent, are they still required to pay the remainder of the lease if it was a yearly lease?

View more questions Search