We have a water lein placed on the house fm our town tax dept. We are paying off the house, not changing mortgage companies but the house will be paid in full. Will the lein affect that in any way? Will the mortgage holder release the deed?
2006-11-27 02:07:41 · 5 answers · asked by rubmaster36 2 in Business & Finance ➔ Renting & Real Estate
The water lien should not affect the mortgage that you are paying off. When you payoff your mortgage/deed of trust, the lender is supposed to (and required by law in some states) release/reconvey their lien. However, you will still have the water lien against your property which will need to be addressed if you decide to sell the property or refinance.
2006-11-27 06:12:33 · answer #1 · answered by Sithein 3 · 0⤊ 0⤋
The water lien won't affect your home mortgage and the mortgage company will release the deed upon fully satisfying their loan to you, but if you ever decide to sell your home and a lien search is pulled against your home, your entire closing process will come to a screeching halt until all liens are satisfied because the buyer's bank won't release funds on a property that has outstanding liens on it. Basically, a lien is a a financial claim against a piece of property due to an outstanding debt, and until that debt is paid off, the lien will continue to exist and prevent you from selling your home. Also, the lien can result in a nasty battle with a collections agency if left unpaid too long, resulting in your own credit history being destroyed. I'd settle the lien in any way possible because even if you don't plan on selling the home anytime soon, having a lien on it will eventually destroy your credit as the town tax dept will get collections to go after you.
2006-11-27 02:29:16 · answer #2 · answered by Anonymous · 1⤊ 0⤋
It will not affect the loan but will affect the transfer of title. Any opem liens will need to be addressed. If this is an assessment that is paid each year it is carried forward with the new owner but full disclosure is necessary. Title search will provide disclosure.
Here is some additional info. Hope this helps.
2006-11-27 03:25:27 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I don't know why you wouldn't pay off the lien if you have the means to pay off the mortgage.
2006-11-27 04:09:25 · answer #4 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
They won't release it with a lien still on it
2006-11-27 02:14:56 · answer #5 · answered by dumpllin 5 · 0⤊ 0⤋