Hidden Liens On Short Sales?
Hidden Liens?
When you are thinking about buying a short sale you should consider what is going on, especially if you are not using a Short Sale Specialist. The process is a debt collection process and any debt that was secured with the home (thereby creating a lien) has to be negotiated. This means there’s a ton of opportunity for a hidden liens on a short sale.
Typically hidden liens can pop up from the seller neglecting to disclose a business arrangement, neglecting to pay a utility bill or just be unaware. It’s a good idea to do a title search but the attorney will want some assurance that they will get paid for their work if the short sale does not work out.
Sometimes a “hidden lien” could be something that was simply miss-recorded by a previous lender. In that instance, it’s important to get an attorney involved.
Finally, hidden liens could affect a short sale if the home owner did something last minute to cover it.
If you find hidden liens never fear, most of the time the banks will pay off these liens if they are legitimate liens. It pays to seek a professional in these cases, but even witht he best counsel, some fo these kind of things pop up.
