I have a rental unit that is part of a triplex. The owners of one of the units may attempt to put a lien on my property to try to recover some of the costs she accrued from a roof lawsuit that she one with the original builder. I worked with an attorney to come to the conclusion that I did not owe her what she was asking, but tried to offer her a fair amount. She never responded, so that is why I think she may try to put a lien on my property. She had until Friday, April 20, to respond. She could place the lien any time now.Meanwhile I just applied for a refinance on my original home loan. I have a rate locked in, and will have all paperwork completed by tomorrow. My concern is that if I pay up front for the Appraisal, will I lose that money if the lien gets placed prior to closing. I am being charged $700.00 for an appraisal, and would hate to lose it in the process due to a lien suddenly being placed on my unit.
State/Country relating to question: Colorado
Hello,Did the other owner sue you as a defendant and get a judgment against you?If so, even if the creditor did place a lien on your property, it is unlikely that the lender would discover it if they have already conducted a title search because they typically don't do a title search immediately prior to closing. A title search is conducted usually a week or two before closing to check for any liens or title defects..If she didn't file the lien before close of business on Friday, it wouldn't be recorded until Monday or later..So it is pretty unlikely that even if she filed it on Friday it would interfere with any closing if they have already run the title. But if they do become aware of it prior to closing, they can either require it to be paid off prior to closing or could roll it into a refinance if there is equity in the home.
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There have been no attempts to sue me as of yet. Before she can put a lien, does she have to win a judgment? In other words, does she have to take me to court and win prior to placing a lien? Up to this point it has just been the two of us trying to negotiate between emails. I paid an attorney for consulting with me, but have not "hired" officially. I will not close for 3 weeks approximately from tomorrow. If she takes me to court, of course I will pay if I lose, but I don't intend to lose the case. In the meantime, I want to try to refinance to get my house payment lowered.
Yes, in order to file a lien on a piece of property, the creditor must first sue and get a judgment against the defendant. If they haven't gotten a judgment against the owner, then they can't legally file a lien. .Even if they did sue, it would likely take months before they could get a judgment. So it is unlikely that even if they filed suit tomorrow they could get a judgment before you closed.
13 years real estate, Realtor. Landlord 24+ years
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