Sage-Tips

What does foreclosure Marsh of lien mean?

A foreclosure lien, also known as a mortgage or real estate lien, is a type of property lien that is placed against a home or property. This process essentially describes what it means when a lender elects to foreclose on a mortgage lien.

What is the difference between a lien and foreclosure?

A specific lien is granted only with respect to a particular asset. In foreclosure, the specific asset is the real property that is subject to the foreclosure. A specific lien also occurs in the context of real estate property taxes owed on a subject property.

What type of lien takes priority over all other liens?

Mortgage liens
Mortgage liens usually take priority over any other lien except tax liens.

What type of mortgage has priority over all other liens or claims on a property in the event of a default?

A first mortgage is a primary lien on a property. As a primary loan that pays for the property, the loan has priority over all other liens or claims on a property in the event of default. A first mortgage is not the mortgage on a borrower’s first home; it is the original mortgage taken on any one property.

How are creditors or lien holders paid during a foreclosure process?

How are creditors or lien holders paid during a foreclosure process? The property is sold at auction and lien holders are paid from the proceeds of the sale. The lien holders are paid from the proceeds of the foreclosure sale.

What are involuntary liens?

Involuntary liens are liens that are placed on a property by an outside authority against the will of the owner. Rather than mortgage lenders placing a lien on the property, involuntary liens are typically placed on properties from regulatory authorities for unpaid debt obligations.

What is an involuntary specific lien?

All liens have two specific traits: They’re either voluntary or involuntary, and they’re specific or general: An involuntary lien is placed on the property against the owner’s will. If the property owner owes money to someone, such as the tax collector, and the owner doesn’t pay, a lien is placed on the property.

Which is the most important lien?

A first lien has a higher priority than other liens and gets first crack at the sale proceeds. If any sale proceeds are left after the first lien is paid in full, the excess proceeds go to the second lien—like a second-mortgage lender or judgment creditor—until that lien is paid off, and so on.

What does it mean to have a lien against your property?

A lien is a legal right or claim against a property by a creditor. Liens are commonly placed against property, such as homes and cars, so that creditors, such as banks and credit unions, can collect what is owed to them. Liens can also be removed, giving the owner full and clear title to the property.

What is the difference between a general lien and a specific lien?

A specific lien is granted only with respect to a particular asset. A general lien is a lien on all property. This is both the real property and personal property an individual owns, not just one specific real property (like in the case of a foreclosure).

Can a Hoa foreclose if there is a lien on property?

If an HOA has a lien on a homeowner’s property, it may foreclose—even if the home already has a mortgage on it—as permitted by the CC&Rs and state law. The HOA can foreclose either through judicial foreclosure or a nonjudicial foreclosure, depending on state law and the terms in the CC&Rs.

Can a delinquent Hoa charge become an automatic lien?

Answer: Delinquent HOA dues and assessments can become an automatic lien on a home. However, recent changes in Arizona law provide that a delinquent fine for a basketball goal, for leaving a garage door open overnight, or any other violation of the CC&Rs, cannot become an automatic lien on a home.

What happens to a second mortgage after an HOA foreclosure?

Following an HOA foreclosure, all liens that are junior to the HOA’s lien—such as a second mortgage—are extinguished and the liens are removed from the property title. While the collateral for the debt has been eliminated, the borrower’s obligation to pay remains in place because the borrower signed a promissory note.

Can a Hoa collect from a non-member of the Hoa?

Typically these delinquent fines are attended to by the HOA when the home is sold which keeps an HOA from having to collect from a now non-member, prior owner. Note1: A “state action” is required for an HOA to have the authority to place an automatic lien on a property within its membership. Bourne Valley Court Trust v.