Lien on property
Thank you in advance for any replies! I have property that was trnsfrd to me by my parents about 6 yrs ago. It is a vacant lot and a half in residential area. I later found out that there is a lean on it from the late 70's early 80's from when the curbs were installed. Lean is about $2000.00 or so. The property has no mortgage on it, deed is solely in my name. I would like to build a house on it and rent it out I would like to do this using the property as collateral if possible, (no money down to have house built) or is this even possible?
Good Thinking! Anything is possible and I might be able to help, please email me your phone number and I will call you back tomorrow. What city,state are you from and have you already paid the taxes on it? Do you have or have you ever had a home before?
Be careful. There is usually interest that accrues on unpaid bills. Call the Engineering Department of the city and see how much interest the lien has built up. At 10% per year, a low amount, and using 1975 as a start year, the property could currently owe $28,842. OUCH!
If this is so, negotiate with the city to come to some reasonable amount in settlement, then get an attorney who is well connected to get the city to go even lower. I hope the lot is worth at least $50,000. making it worth your trouble.
Good luck,
Mitchell
You need to find out exactly what type of lien it is. Some type of liens have a time frame like say 10 years.. then they will fall off. Of course this depends on what state and county it is in. Do your homework.