Posted by JohnBoy on March 14, 2002 at 13:45:19:
Does this $10k lien exceed what’s owed on the house already where the $10k lien would be encumbering the property for more than $140k?
As long as your first and second lien total the amount you finance the buyer or less then there wouldn’t be a problem since any proceeds from his loan would go to pay off any existing loans and liens to get clear title. The buyer’s lender won’t even fund the loan unless they know they have enough funds to cover paying all existing liens off.
So the property will never get deeded unless his lender knows all the liens will be paid off from any proceeds they fund on his loan. Anything left over after all costs involved would be paid to you.
How much is owed on the property now? Your $10k second lien + ??? first lien = ???