What is a lien on a house | Property Liens [2023]

Summary

In this video, real estate expert Gerald explains what a lien is on a house, using the example of a homeowner named Henry. He describes how liens, such as mortgage liens, can affect the sale of a property. Gerald illustrates the process of how a lien is recorded at the county records and how it must be resolved before a house can be sold without any issues. He also touches on other types of liens, like mechanic's liens and tax liens, and their impact on homeowners and potential buyers.

Takeaways

• 🏠 A lien on a house is essentially a legal claim by a creditor due to unpaid debts, often unknown to the homeowner.
• 📅 Liens, including mortgage liens, are recorded in public records at the county, where they can be seen by anyone.
• 💵 A mortgage lien allows the lender to use the property as collateral in case the borrower defaults on payments.
• 📝 A mechanic's lien can be placed by contractors when a homeowner doesn't pay for completed work, such as roofing.
• 📉 If the market value of the house drops and the homeowner owes more than its worth, the owner may be considered ‘upside down’ on the property.
• 🔍 When selling a house, a title company checks for any existing liens, ensuring a clear title for the buyer.
• 🔒 Even if the mortgage is paid off, other liens (like tax liens or mechanic's liens) can still exist and need to be settled.
• 💡 Involuntary liens (such as tax liens or judgment liens) can be placed on a property without the homeowner's full understanding.
• 📑 It's often advised that the seller handles title work before listing the house, ensuring a clear title when they receive a contract.
• ❓ The speaker asks viewers what their biggest concern is when it comes to selling a house and encourages engagement in the comments.

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