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 = ???
I found a buyer to purchase my house for 140k. I have a second lien on the property for 10k (I will pay this off, the buyer does not have to pay it). I will owner finance the house for 6 months and then refinance the house into his name when the six month time period is up. We are meeting with an attorney to draw up a contract, and one of the points we will cover is that I must have the lien removed before he refinances the property into his own name.
Is there something the attorney can write in the contract to assure my buyer he has protection against this lien? What if the lien is not paid off? Since the property will be deeded to him, does the buyer have a protection where he can foreclose on the lien? I apologize for ignorance but I am new to how this works and don’t want the lien to be a deal killer. If my buyer feels protected that he has a course of action should the lien not be satisfied, he will proceed.
Thank you.