When discussing mortgages, one term that often arises is "lien." A mortgage is not a loan, but a lien on the property that keeps the loan secure. It is important to understand this confusing term in order to properly understand mortgages and property ownership.
A lien is a hold on your property so that is can be used as collateral for money or service you owe to another party. A lien can keep the borrower from selling a piece of property by preventing the transfer of property title to a new party. Liens are often involved in situations in which one person or party has loaned money toward a substantial item in the possession of a borrower, such as in a mortgage. A lender can force the sale of any property that has a lien in order to collect money owed from the borrower. If instead the borrower decides to sell the property, he or she must pay the lien-holder before the property title can be transferred to the buyer.
One common example of a lien is a construction lien. When a property needs repair, maintenance, or renovation, the property owner often hires someone to do the work. After the work has been completed, the property-owner is legally obligated to pay for the improvements to the property. The lien exists in order to help ensure that a construction worker can be properly
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A lien on the property may mean that the person attempting to sell the property is not the legally recognized property owner. Therefore, a lien can prevent you from securing a clear title, and you may not fully own the new property you have purchased. You can hire an abstract company to conduct a title search by delving through public records concerning the property's history to be sure that no lien exists. The title search should also indicate if the seller is legally recognized as the property owner, the description of the property, and details of any lien or other holds on the
Collateral for the defaulted loan. Distressed real estate involves making a distressed purchase. According to Financial Crisis (2011), “[A] distressed purchase is whereby the property owners are usually in a foreclosure/short sale situation.” Foreclosure applies to a residential real estate loan in which a bank or creditor repossesses a home because of nonpayment. The institution will legally possess the right to resell the property as collateral for the defaulted loan. The selling price can be sold at a price equal to or greater than the original loan. The reason distressed properties can be bought at a lower price is the institution has already received a series of payments toward the original home loan. In many situations the lender can sell the house for a lower cost than the normal market value, leaving the buyer the opportunity to make a purchase at a lower selling price than market value and reselling the property at a profit (Demand Media, 2011).
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
On May 20th of 1862, President Abraham Lincoln signed, and put into effect, the Homestead Act of 1862. The Homestead Act opened up more than half a million square miles in the Western half the the United States during the Civil War. The Homestead Act was a major turning point in American History. It was a huge milestone for American history because its consequences included implications during the Civil War, but also paved the way for westward expansion within the United States.
Absolute title: 1. the right ownership of a mortgage deed, which gives the right, in certain specific circumstances, to demand repayment in full, of the outstanding debt than the due date.
Use it for anything that's pressing. For some, it really might be a blown furnace. For others, it could be an emergency room visit and some broken bones to pay for. For others, it could actually be for a vacation. Plenty of people have gotten title loans for that reason. All reasons are okay.
A fair number of individuals do not trust lenders that tack on excessive interest rates. The thing about payday loans is that they do have high interest rate. You are going to want to take note of that. The following tips can give you guidance on protecting yourself whenever you need to take out a payday loan.
Personal Finance Essay Many students in today’s world believe they need to take out student loans for college. I believe you don’t have to take that path. Student loans are hurting many students who attend jcollege, and I believe that the loans should stop. Any student can get through college and be debt free at the end.
First, it is important to define what a loan is in order to differentiate it from a sale.
The selling of tax liens provided the city relief on outstanding debts property owners incurred and saved the City millions of dollars from maintaining buildings. This legislation was broken in to two phases: the first was done by selling $250 million in tax liens to a private investment trust. “The second phase, was initiated by the adoption of Local Law 37 by the City Council. It establishes the grounds for executing a court-sanctioned title transfer of tax-delinquent residential property to a qualified third party if the property is found to be ‘distressed.’’(Oser, 1996). The Giuliani administration’s 1996 Tax Lien Sale legislation was a way to generate income and rid the City of being the largest landlord by being able to capture tax revenue immediately.
Abstract As people of many ages wish to further their education outside of high school, they tend to take out student loans in order to fulfill this wish since the large tuition payment is not in their budget. Paying for an education that presents a degree seems easy to many by taking out large loans to pay for their education. Recently, student loans have challenged the economy of Americans. Education is perceived as a necessary expense to many, in which they do not mind putting a burden on the economy for.
In the U.S today the growth of students taking out student loans to help with daily finances and living expenses are increasing each year. That makes these young students to have an increasing debt on their name each year. To help students that are unable to pay back their student loans for any reason, lenders should have a forgiveness policy. If lenders would forgive student debt, it is said that this would stimulate the economy immediately. If this happened then credit markets would unfreeze, more jobs will be created and tax revenues would increase.
If, for example, your spouse is granted the house in your divorce, the court can require you to surrender your ownership by signing a quitclaim deed. If the court orders you to do so and you refuse, the court can find you in contempt and jail you until you agree to sign the quitclaim. If you still refuse, the court may issue a judgment that acts in lieu of a signed quitclaim deed. Mortgages and Liens You can surrender your rights to a property, but you can't erase your obligations to it. Signing a quitclaim deed does not remove your financial obligation to pay an existing mortgage or any other liens, such as those for construction, that are already on the property.
A mortgage is a form of debt, secured by the warranty of a specific real estate property. The borrower is required to pay back the debt in predetermined payments. The most common reason for acquiring a mortgage is to purchase real estate when it cannot be paid for up front. The homebuyer, in a residential mortgage, pledges their home to the bank. Over a period of years, the borrower pays back the loan with interest. Once the mortgage is paid in entirety, the owner retains the property free of any charges. However, in case of foreclosure, the bank has an entitlement on the house, as a form of insurance should the buyer default on repaying the mortgage. The bank can then sell the house, and use the capital to pay back the remaining mortgage.
A lien is a notice attached to your property which puts everyone on constructive notice that a creditor has a claim. A lien is typically a filed and recorded in the county public records (if involving real property) or with the secretary of state (if involving personal property). Why does a lien help a creditor? Well... in order to sell or refinance the property, the borrower's lender is going to require clear title on the property as a prerequisite to the loan. Thus, a lien existing on your house has the negative effect of clouding the title and thus prevents you from selling your property. In order to clear title on the property, you must pay off the lien and have a release filed in the county public records putting everyone on notice of the discharge of indebtedness. If the lien is not paid off, certain lien holders can choose to foreclose on the property and recover what they owe.
Home loans, or mortgages, use a borrower's home for collateral. This home can be a single-family house up to four-unit property, as well as condominium or cooperative unit. Lenders fund home loan, but both the lender themselves and broker who act on behalf of the lenders originate.