QUESTION
How should I proceed if I want to buy property with liens on it?
Asked on Dec 09th, 2013 on Bankruptcy - Michigan
More details to this question:
I have a question that I think you may have some experience with. I am trying to buy a property but just found out that the property has a few liens on it. There are 3 of them and were put on between 7, 8, and 9 years ago. These are liens total more than the appraised value of the house of 85K. Here is what came up in the title search.. About 33K w/ a deed of trust from a promissory note to a funding company from 2007. About 48K from 2005 judgment. And about 76K + 11K fees from 2004 judgment. I really want to purchase this property. Obviously I can't get a loan approval. Can I purchase this property without using a bank and the owner sell it to me using a quick claim or normal warranty deed? I had heard that some people buy properties with these kind of liens on them. I heard that liens can fall off after some time. Are the lien holders notified if a simple new deed is recorded?
3 ANSWERS
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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You should most certainly take the information to an attorney for an opinion. As it stands the property is way underwater, and the trust deed could be a major problem.
Answered on Dec 13th, 2013 at 7:45 PM
Raymond Ira Moniak
Yes you can purchase the property without using a bank, however, a quitclaim deed is unwise. Such a purchase would not release the liens on the property and any lienholder can proceed to enforce the lien by way of judgment, the larger of which would involve selling the property and you coming out with nothing. If their was a Deed of Trust (mortgage) and the current property owner fails to pay the mortgage the property would most likely go to foreclosure. Only Abstracts of Judgments for Judgments over 10 years old and not renewed would fall off. You should take all this into consideration as to any purchase price for the property.
Answered on Dec 13th, 2013 at 5:37 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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You are taking a risk that you will loose the property by buying the property with liens on it. Contact a good attorney to discuss this.
Answered on Dec 13th, 2013 at 5:33 PM