« Lake County Florida Tax Deed Sales Auctions Tax Lien Certificates … | Home | Land Auctions VACANT LOT- HOBART INDIANA- NO RESERVE $1234.00 »
« Lake County Florida Tax Deed Sales Auctions Tax Lien Certificates … | Home | Land Auctions VACANT LOT- HOBART INDIANA- NO RESERVE $1234.00 »
2 Responses to “Does all tax lien have to be paid off b4 I can finance a home …”
Does all tax lien have to be paid off b4 I can finance a home?
Comment made on February 20th, 2010 at 6:12 pmI am paying on three tax liens. Does these liens have to be paid in full before i can finance a home? Or can a structured payment plan suffice?
You will need to clear all of the liens. A structured payment plan will not suffice as you could default on the payment plan and still go into foreclosure.
When you take out a mortgage, the property itself is put up as collateral. Before a lender will take the property as collateral, they will want to make sure there are no outstanding claims against the property. Any previous claims could result in a foreclosure and the mortgage lender would have to take whatever was leftover from the settlement (subordination). Most lenders will not risk this. They will hire a title insurance company to make sure there are no existing claims prior to funding the mortgage.
You might be able to take out a separate loan to pay off the liens and then consolidate that into a new mortgage, however if you are already in financial hot water, this would end up increasing your total debt. Consider the situation carefully before taking on additional debt you may not be able to pay off.
Comment made on February 20th, 2010 at 11:14 pmReferences :
HOA Treasurer for 12 years.
Leave a Comment