10 Plus Things Houston First Time Home Buyers Need to Know About Mortgage Lien
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Hi, we always love having you. Thank you for stopping by. Today we will speak briefly about lien. Mortgage lien to be specific. We are sharing this information with you, because we know you work very hard to purchase your first home and we want to make sure you have all the information necessary, to help you to keep it for as long as you wish. That said, here are a few things you should know about mortgage lien.
A lien is a legal claim against a property that can be used as collateral to repay a debt. Translation, you agree to pay back the money you borrowed to purchase your new home and if you fail to do so, the lender can take back the house, sell it, and use the proceeds to pay the debt.
There are voluntary liens which require your consent, such a mortgage lien, and involuntary liens, such as tax, judgment and mechanics liens.
When your mortgage is paid in full, the lien is removed (release of lien).
While some liens are public in Texas and can be accessed by way of the county accessor’s office or the county courthouse in the district where the property is located, depending on the circumstances, a lien can also be deemed private and confidential.
A lien gives mortgage lender the ability to foreclose on your home.
Mortgage lien remain valid on a property until the debt is paid in full.
A mortgage company usually send a release of lien within 30-90 days after the debt is paid in full.
A lender can renew a lien before it expires.
liens can be public record filed with the county records office.
Mortgage lenders may not approve a mortgage loan if the property has outstanding liens.
Liens are paid back according to when lien holder recorded their lien. However, priority may be given to property tax liens regardless of when they were recorded.
You can sell a house that has a lien on it, however, as stated above, the money from the sale must be used to pay back the lender.
There are different types of liens, such as property tax liens, judgment liens, owelty of partition, mechanics liens, and homeowners’ association liens, this article is addressing mortgage lien.
Texas has a homestead exemption, which means creditors can still place liens on a debtor's primary real estate, but they cannot seize the property. However, as stated above, a mortgage lender can foreclose on your home should you default on your loan.
liens on your homestead clouds the title.
To find out if you have a lien on your property, you can check public records for your county.
A title search preform by a title company will find all liens associated with the property.
Each county may charge a fee to record a lien or for documents showing proof of a lien or a release of lien.
If a lien is on your property and it does not belong to you, or if the lien is invalid, you can go to court and ask for a court order to have the lien removed.
Although Texas mortgage lending is federally regulated, it is managed by state agencies. For more information, please contact the Texas Department of Savings and Mortgage Lending.
We at First Home Houston is always looking out for your best interest. As always, we thank you for stopping by. Until next time… Diana.
