Protection against second mortgage and liens - Posted by Bilal M

Real Estate Investing
1

Posted by Bilal M on February 22, 2000 at 11:56:42:

Thanks a lot Jim . I really appreciate your help.

2

Protection against second mortgage and liens - Posted by Bilal M

Posted by Bilal M on February 22, 2000 at 01:04:04:

I have an opportunity to lease/option to purchase a house. For 5K down and 5K remainder a year from now at the end of 12th month I have an option to purchase .
I have 2 concerns

  1. How do I find out if other than the first mortgage there are any other existing liens.
    2)What if I make my payments ontime and by the end of the year the owner gets a second mortgage against the house and before i buy it it will be all mess.
    Is there a way that i can protect myself so during the entire year as long as I’m making payments ontime and come up with another 5K I get the right to property?
    Is there a way this lease/option to buy agreement be reflected on title so other than primary mortgage company any other mortgage company does not lend against equity.?
    Any comments or suggestions are greatly appreciated
    Thanks
3

Re: Protection against second mortgage and liens - Posted by Jim IL

Posted by Jim IL on February 22, 2000 at 04:00:49:

Bilal,
To see what liens are on the property now, a title search will help you.
To protect against other liens being placed on it in the future to encumber it past your sale price there a couple of things you can do.
One, make sure that your agreement states that the seller will not exceed your sale price or a percentage if it.
Two, Have the seller sign a peformance mortgage.
or
Three, record a memorandum of agreement with the county.
This simply states that there is an agreement, but not the terms of that agreement.

To find out more about this, read the articles, and check the search engine about protecting L/O’s, and performance mortgages.
Also goto www.legalwiz.com and read there about this topic.

Good luck,
Jim IL