Could you have unknown liens against your property?

There have been times when a seller goes to transfer their home, and is shocked to find a lien waiting for them. 

What is a lien?

•  A lien is a declaration placed on an owner's home in order to settle a debt which could be accrued by owing child support, tax related debt, and many more.

Liens can come from several places. One example, is a lien against your home from an unpaid bill from a home improvement project. Another type is a Federal tax lien. 

See these videos for examples on different types of liens:

Contractor Lien Example

Federal Tax Lien

Different Types of Liens

As a homeowner or potential homeowner, it is important to educate yourself on this topic. The moral is, if you're thinking of selling, take a minute to speak with your mortgage company to ensure there are no unexpected surprises before putting your home on the market. 

Facts about liens:

• In most cases, the seller has 30 days to clear up any liens.
• If the situation is not resolved quickly delays in closing can add additional hardship and costs for both the buyer and the seller.
• If the mortgage is paid off and a lien is found, it can still take up to two weeks to close and equity line of credit, which can be the cause of the lien placed against your home.
• Most banks want to ensure no last minute purchased have been made on your line of credit once the house is sold.

If you have further questions about this subject, please feel free to contact us!

For more information on this topic, also see this article about liens posted on Realtor.com.

To Rent or Buy in Cleveland?

Recently, we have seen a sudden rise in the Northeast Ohio rental market. The spark in the number of people looking for rentals has left the market dry of rental properties. With the simple effect of supply and demand, some rental prices have now gone up.

If the cost of a rental is on the rise, have you even explored the option to buy?  With low interest rates and dropping home prices, you might be surprised what you can afford!

In an article published by RISMEDIA, April 25, 2011, the author explains in more detail.

The article explains when the housing bubble burst in 2006, the cost of buying a house was considerably higher than renting that same house in most areas. Today, the opposite is true in many states, particularly those hit hardest in the housing crash – namely Arizona, California, Florida, Nevada and right behind them Illinois, New York and New Jersey.

A recent study by Deutsche Bank reported the share of income Americans are now paying to own their homes is 9.8% after mortgage, taxes and insurance payments – down from 17.2% at the housing bubble’s peak. Conversely, the study further says that in 28 out of the country’s 54 major markets, it’s now less expensive to pay a mortgage and other major housing costs than to rent the same house.

Want to know how to figure out if buying is better for you than renting?

Each real estate market is different, to find out details of the area you are interested in contact the Garfield Group.

Conducting an analysis is not difficult. Start with the total cost to rent a home or apartment – “total” meaning rent, insurance, maintenance/association dues.

Then, determine the cost of buying comparable housing; for this is a little research is necessary. Garfield Group can help you figure out the current sales prices of homes in areas of interest. A REALTORr, Garfield Group, can also help you discover what you can expect to pay for taxes, utilities, insurance, etc.

Lastly, talk to a local bank or mortgage broker to ascertain the availability and cost of the mortgage needed to buy the home.

All of this information is worth taking a look at before settling for a high priced rental. In the end, buying may or may not be better for you but educate yourself on the subject.

For more information Contact the Garfield Group with RE/MAX Traditions. They can point you in the right direction and help you determine whether to rent or buy.

For more information on this article CLICK HERE.