Lien Archives - Title First Agency

Title Insurance Protection

Having title insurance from Title First Agency will protect you from the possibility of a claim to ownership of your home by someone. It’s hard to believe this can happen, but it is more common than people think. It’s not usually a plot to steal your home but a confusion with the deed. The laws regarding property ownership are complex and when liens come into play, someone may believe they still own a house that was technically taken over by a bank.

Title problems appear when parties want to be repaid loans and bills outstanding by the same property. There is a lender that made the first mortgage; the lender that opened the home equity line of credit; contractors whose unpaid bills resulted in liens on the property; taxing districts; and even homeowners’ associations all lining up to be repaid from the proceeds of the house, it’s easy to see how they might not agree on who gets paid what, and when.

Without a title search, the buyer buys all those problems along with the house. The problems don’t go away just because there is a new owner. There have been examples of homeowners having to sell the house just to pay the bills.

Title searches are required by all lenders to be sure that title problems are cleared up before a home is bought. It’s not for you. It’s for them. If the lender makes a mortgage with another that already has claims against it, that lender is going to lose that money.

The Bottom Line: The title is proof that a piece of property is legally owned. It’s an extremely important document. Without a clear title, you are taking a tremendous gamble in purchasing a house or other property. The experts at Title First Agency oversee and perform thousands of closings each year. When using Title First, you can sign confidently on the dotted line knowing that all the details of your title transfer and closing are in proper order. We are here to answer any questions you may have about buying or selling a home, and our team will guide you through the entire process.

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Mechanic’s Lien

The financial crisis of 2007-2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

Since then and because of the losses, title insurance underwriters tightened their guidelines when working with residential properties to prevent further loss.

During the time of the financial crisis, title insurance underwriters often suffered loss due to mechanic’s lien claims. A mechanic’s lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. The lien exists for both real property and personal property. The claim is issued when the work performed was not paid for.

The lien gives the debt holder the right to the property until the debt is paid in full and the property. This could be an expensive situation for new homeowners, so it is important to ensure a property is lien-free before purchasing a home. This can be confirmed with a lien waiver or a paid receipt for any work completed on the property. A lien waiver is a document issued by the service provider that states they have received payment and waive the right to issue a lien against the property in the future.

Title First Agency will protect all property buyers by providing a clear title of the property. If there is a lien, the title won’t be clear and we will coordinate the activity and documentation from the participants and pull each piece together, including paid receipt of any improvements or repairs to the property.

If you’re planning to purchase a home, make sure you know the full status of the property and any lien claims. Buying a home may be the single, largest financial purchase in your life and can signify a much-anticipated milestone. That’s why Title First offers a host of resources to help you understand this important personal transaction.

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Title Agency at Closing

Homeowners oftentimes have more than one mortgage on their property. Once sold, the mortgage has to be released so the buyer gets a clear title.

A mortgage is a debt secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front. To sell a house with a mortgage, the loan needs to be paid off the same day of the closing.

There is a lot going on at the closing of a property. Title First Agency plays a crucial role in the process of closing and protecting the seller from any unforeseen legal issues. Title First Agency can assist with the loan transactions and handle the money between the buyer and seller. One of our agents will receive the money from the buyer, pay off the existing mortgage, remove the lien on the title and transfer the title to the new owner. We will be able to provide the agent with the mortgage payoff amount and account number before closing.

If there is money left over once the mortgage is paid, the seller could receive it within days, if not immediately at closing – each state is different. Title First Agency, as the closing agent, will coordinate the activity and documentation from a variety of participants, pulling each piece of the transaction together.

Title First will finalize the deposits, wire transfers, and checks. After the closing, we will record the deed and the mortgage at the courthouse and prepare the owner’s and lender’s title policies. Buying or selling a home has become a complex transaction and you need a trusted title search company to guide you through the process.

The experts at Title First oversee and perform thousands of closings each year. When using Title First, you can sign confidently on the dotted line knowing that all details of your title transfer and closing are in proper order. We are here to answer any questions you may have about buying or selling a home, and our team will guide you through the entire process. Call us today: 614-808-2062

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Title Insurance and Liens

Home buyers

When putting in an offer on a home for sale and then applying for a loan, the best thing to do is to let a title company do a property title search to make sure there aren’t any bad liens on or against the property.

A lien is a notice attached to a property that lets people know that a creditor claims money is owed. A lien is typically a public record. It is generally filed with a county records office or with a state agency, such as the secretary of state. Liens on real estate are a common way for creditors to collect what they are owed. More importantly, a lien means that the home could be foreclosed on and taken by the lien holder. Again, a title search can say whether or not there is a lien levied against the property.

Examples of bad liens on a property:

Mortgage – the current homeowner’s lender can foreclose on the property if payments are not made every month.
Property Tax – placed on a home loan when property taxes are not paid and take priority over a mortgage lien.
Judgment – a judge has placed a lien on the property after a creditor has successfully sued the current homeowner.
Child Support – if child support has not been paid by the current owner the lien is placed.
IRS -secures the government’s interest in the property when the tax debt is not paid.

A lien on a home is a legal claim against the property. It gives creditors a stake in the home and a way to collect debts owed to them. When getting a mortgage on a property, the lender will require a purchase of a lender’s title insurance policy, which protects their interests in the property should there ever be a dispute in the title. A policy of title insurance insures against defects in or liens or encumbrances on a party’s title to the property.

As a title company, much of our work can be done behind the scenes. The buyer may not even be aware that there may have been any title defects existing at all. They were simply taken care of before the closing.

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