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Mortgage Lien

Mortgage lien is a legal claim against a mortgaged property, which must be paid when the property is sold. It is the encumbrance on property used to secure a loan. The person who has the lien on the property can claim the property if the loan defaults. The mortgage lien typically belongs to the lender in order to secure the mortgage loan. A mortgage lien gives the lender the right to take back the property when the borrower does not make the mortgage payments. Except in those few states in the United States that adhere to the title theory of mortgages, either a mortgage or a deed of trust will create a lien of mortgage upon the title to the real property being mortgaged. The lien is said to "attach" to the title when the mortgage is signed by the mortgagor and delivered to the mortgagee and the mortgagor receives the funds whose repayment the mortgage secures.

Mortgage Lien Release and Tax Forms


Subject to the requirements of the recording laws of the state in which the land is located, this attachment establishes the priority of the mortgage lien with respect to most other liens on the property's title. Liens that have attached to the title before the mortgage lien are said to be senior to, or prior to, the mortgage lien. Those attaching afterward are said to be junior or subordinate. The purpose of this priority is to establish the order in which lien holders are entitled to foreclose their liens in an attempt to recover their debts. The first mortgage generally has prior claim to all other lien holders. If there are multiple mortgage liens on the title to a property and the loan secured by a first mortgage is paid off, the mortgage second lien will move up in priority and become the new first mortgage lien on the title. Documenting this new priority arrangement will require the release of the mortgage securing the paid off loan.

When a borrower wishes to retain an existing second lien after obtaining a new first lien mortgage, the holder of the second lien is required to execute a subordination agreement with the new first lien holder. Subordination requests are generally acceptable when the terms of the new first-lien mortgage do not increase the current risk of the second lien. A mortgage tax lien is an encumbrance placed upon property as a claim for payment of a tax liability. It can attach to any property owned by the taxpayer or acquired after the lien is placed. A tax lien may be imposed for failure to pay city, county, estate, income, payroll, property, sales, or school taxes. Mortgage lien release can be secured on producing the necessary documents that prove that the loan has indeed been cleared. A copy of the mortgage or deed of trust document that is requested to be released must also be produced. A mortgage lien form can be availed online. Mortgage lien records and other related court files can also be accessed and verified online.

Just like most other court proceedings in the United States, mortgage Lien records are also available online for anyone who wishes to see them. Since every mortgage lien is a legal deed on the property, the corresponding civil court keeps the record of the mortgage lien. A mortgage lien may need to be checked when loans are taken with a property as mortgage. It may so happen that an earlier lien exists on the very same property. In such a case, the present lien will only be of secondary priority in the event that the property is sold or foreclosed. Hence, a background check on property mortgage liens is definitely necessary.

Records of Mortgage Liens are available extensively online. What you need is a PC and Internet access in order to get hold of the necessary lien records. These records can be accessed from a variety of Internet sites. The sites may either be government sites or sites indirectly affiliated to the government. Since all court records are maintained electronically in the databases corresponding to every court in the country, all these services do is redirect you to the necessary database or retrieve records from the same for your perusal.

The PACER program, which is the government's initiative to allow public access to court records, may be your best bet to start your mortgage lien search. There is a onetime registration to use PACER services. Subsequently, records can be viewed for as little as 8 cents per minute.

Whenever you embark on a property purchase or are lending out with a property as mortgage, checking the records for existing mortgage liens against the property is very important. You must make sure that the property does not have any liens attached to it so that your money or investment may be safe.