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Investigating Property Liens E-mail
Whether you are purchasing a foreclosure, REO or a home on the general market, it is important to research if there are any liens before you purchase and if you will be responsible for paying them off.

A lien is a legal claim on a property by an entity that is owed money by the owner of the property.  The priority of the lien is usually determined by the date it was placed on the property, with first mortgages generally having the highest priority.  Most others will be considered junior liens and, in most states, are cleared during a public auction.  There are exceptions however, such as tax liens, which can continue to be in effect, even after an auction.

Where can you go to learn about liens on a property?

  • Check county records.  Get the book and page number for the title and go to the local courthouse to the clerk’s office.  The property and anything pertaining to the property will be referenced here.
  • Contact the local property assessor and ask who is listed as the owner of a property.  This may also be accomplished online with some agencies.
  • Subscribe to a service like RealtyTrac that offers resources and tools for such research.
  • Work with a local real estate agent who is experienced in foreclosures.
  • Hire a real estate attorney.
  • Hire a title company.
There are also services you can pay that have the information online.  Most of the time companies that own national title companies offer these services.  This will be the same information that you can gather locally.  

It is important to research liens before you purchase a property, whether the property is a foreclosure or not, because you as the buyer may be responsible for paying off those liens.   
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