Posted by John Behle on April 26, 2000 at 18:42:34:
Liens are the same as loans as to first, second, third position, etc. It is all in the order of recording except for a few special types of liens like “mechanic’s liens” and “Property Tax” liens.
As far as the attachment, we would need to know more information, but I would recommend that this is a situation where “if you have to ask… you need legal advice.” Legal matters are a little like brain surgery, not recommended to try on yourself.
A title company is a good resource for this. A “PR” (pre-liminary title report) will tell you all the liens and potential problems. Then “Title Insurance” makes sure you are protected. You might be able to get a PR free or very cheaply and then discuss it with an attorney at the title company.
Question concerning liens - Posted by kcdylan (ME)
Posted by kcdylan (ME) on April 26, 2000 at 15:58:23:
While doing some due dilligence today at the courthouse I came upon an interesting situation. A vacanty property that I am looking to purchase has several small liens on it and I am just wondering who is in first position? or if there is that sort of thing with liens. I need to negotiate a lower payoff in order for the numbers to crunch, also I am wondering about an attachment that was filed by a bank about ten years ago; is that collectible upon the sale of the property? Thanks for all of the great help and ideas creonline!
p.s. will this deal be expensive and a complete headache to close??
I totally agree with the previous posters. I have had a lot of first hand experience with this stuff lately, and you definetely need a lawyer. The answer to your question varies state by state, and case by case. In my state, for instance, I think the way the statute reads is that a lien by someone who actually did construction, i.e., backfill, foundation, architectural type stuff is in superior position, whereas most subcontractors will be by order of lien, unless they were under a GC with superior position, or sub-subcontractors, or in “privity” with the owner, etc. I wish I was kidding, but I’m not - it’s brutal. If the total amount of the liens is small enough to make the deal worthwhile anyway, then just call them up one by one and ask what they’d be willing to take in settlement.
It will positively be a headache. How I would approach it, and whether it would be worthwhile depends on a multitude of variables. How many is several? What do you consider to be a small lien? How much is the lot worth? Who holds the liens (collection co., large corps., individuals)? How old are the liens? Does the debtor have any other properties? I do not know what you mean by an attachment (judgment? lis pendens? foreclosure notice?).