Legal Question in Real Estate Law in Illinois
Real Estate - Closing with leins?
We are looking at some property that has several leins on it. The owners have stated that their is only one lein on the property, but we know there is more. How does the multiple leins effect the purchase of the property? Their mortgage company has informed them of a settlement price they must sell for, in order to avoid forclosure. Will all remaining leins be the responsibility of the people we purchase from?
2 Answers from Attorneys
Re: Real Estate - Closing with leins?
The liens will be taken care of at the closing.
Re: Real Estate - Closing with leins?
The mortgage company will only settle their lien: the mortgage. The other liens would probably still be on the property if they're not taken care of separately at closing as Mr. Padove suggested. You should get a title commitment that'll show all the other liens and they all have to be negotiated separately unless the property goes through the foreclosure process which would take care of the forecloser's lien and probably all the others after it (but not before it).
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