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How to ensure repayment of house payments for a friend who is selling her home

How to ensure repayment of house payments for a friend who is selling her home

Q: Do liens have to be paid before closing?

Yes, liens typically must be resolved before closing on a property sale. Any outstanding liens can affect the transfer of ownership and may need to be paid off to clear the title. This ensures that the buyer receives a property free of encumbrances.

Q: Does a lien on a property affect the buyer?

Yes, a lien on a property can significantly affect the buyer. If there are existing liens, the buyer may inherit those debts unless they are resolved before closing. This can lead to complications in the sale and potential financial liability for the buyer.

Q: What is an example of a voluntary lien Quizlet?

An example of a voluntary lien is a mortgage. In this case, the homeowner voluntarily agrees to give the lender a lien on the property in exchange for a loan to purchase the home. This agreement allows the lender to claim the property if the homeowner defaults on the loan.

Q: Which circumstance would create a voluntary lien?

A voluntary lien is created when a property owner agrees to secure a loan with their property. For instance, when someone takes out a mortgage to buy a home, they voluntarily grant the lender a lien on the property as collateral for the loan.

Q: Can someone put a lien on my house without a contract?

Generally, a lien cannot be placed on a property without a legal agreement or contract. However, certain types of liens, like tax liens or judgment liens, can be imposed by law without a contract if the property owner owes money to the government or has lost a court case.

Full question:

I have made 3 mortgage payments for a friend who is selling her house. What form should I complete, such as a lien, to ensure payment at the closing of the sale of the house?

Category: Real Property
Subcategory: Liens
Date: 04/07/2025
State: National

Answer:

A judgment lien is obtained after a loan has gone unpaid and a person sues and wins a judgment based on the loan contract. After winning the judgment, the creditor can use the judgment to place a lien of the property. However, secured creditors, such as a mortgage company, will come ahead of an unsecured creditor in the collection line when property is sold to satisfy a debt.

I am unable to provide legal advice, such as recommending a particular form. Personal loans are commonly made with a promissory note. The note may be secured or unsecured. If it is secured, that means there is property, called collateral, that may be taken to satisfy the debt if the debtor fails to make timely payment. A mortgage loan is a typical example of a secured loan, secured by the property the loan is made to acquire, which may be sold if the debtor defaults on the mortgage. A promissory note may also contain a cognovit or confessed judgment provision that has the debtor agree to waive any defenses if the matter
goes to court.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is an example of a voluntary lien?

A voluntary lien is a legal claim against a property that the property owner agrees to, usually in exchange for a loan. A common example is a mortgage, where the borrower grants the lender a lien on the property as collateral for the loan. This means if the borrower fails to make payments, the lender can foreclose on the property.