The Priorities within a Mechanics Lien

by Kaylie Phelps

When a judge has to enforce a ruling and the debtor in the case owns real estate property, then recording liens and ensuring the priority of the lien is clear is of tremendous importance. In theory, when a debtor has sufficient equity in their property, the property should be refinanced in order to pay the money that is owed. Alternatively, the creditor may agree to have the money paid to them once the property is sold. In most cases, the first person to have recorded a lien will be the winners.  However, it is very important to seek legal advice about this if you do have any concerns about a mechanics lien.

First to Record

The idea of the first to record a lien being the winner is because liens are recorded in chronological order. Hence, the first lien is ranked superior to any others. Some legal professionals will refer to these as the “senior liens”. So long as the senior lien is also valid, then all the other liens will have to wait their turn. So, for instance, if the property is sold for less money than the value of all the liens put together, the liens that were filed last are unlikely to be paid.

This is a strong possibility when properties are sold in Sheriff’s auctions or foreclosure. The money that is raised here will be used to pay the most superior lien, working its way downwards from there.  Indeed, any future lien, known as a junior lien, can be wiped out if no money is available for them.  Only if there is any leftover equity will these liens be paid, and they will be paid in chronological order.

If you have placed a mechanic’s lien on a property, you should contact the county recorder to see if any other liens are on the property, so that you know whether your lien is a superior or junior one. This can be very important, particularly if you were intending to ask a judge to foreclose on the property that you have placed the lien on. Additionally, you also have to consider the possibility that the debtor will die, in which case last illness and funeral expenses will have to be covered first as well.

First Recorder Is not Always the Winner

They say that the exception proves the rule. This is because different states have different laws surrounding their property laws. For instance, in Florida, liens placed by banks will always be classed as superior, regardless of when they have recorded it. Florida also has what is known as an unlimited homestead exemption, this means that if someone lives in the property against which you have placed a lien, you may still not be able to force payment until the property owner decides to sell, or dies. The exception to the homestead exemption, however, is a federal tax lien.

As you can see, there are many complicated rules and regulations to think about when it comes to liens. Make sure you seek proper legal advice.

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Installment Loans – The Perfect Option for People with Bad Credit

by Kaylie Phelps

If you have bad credit and you need money fast, you may feel as if there is nowhere to go. However,you may want to look into installment loans, which are long term loans, as these exist specifically for people with bad credit. However, it is likely that you will have to be able to prove you are in permanent employment before you will be accepted for this type of loan, as the lender will need to know that you can make the repayments. So how do you get one of these loans?

Having the Right Attitude

First of all, always remain positive. Before you do anything, you also have to do some research. Start with yourself: what is your current income and what are your expenses? You are not trapped by bad credit, but you do need to know just how bad your credit actually is. This will enable you to only approach those lenders that will consider someone with your particular history for their installment loans.

Check Your Options

Ideally, you should be able to go to the bank or your local credit union in order to get a loan. Always try the bank with which you have a bank account. If you are seen as a loyal customer and you clearly explain why you need a loan and how you intend to repay it, they may be willing to consider you.

Next, think about whether a secured option could work for you. If you have some sort of collateral that you can put up against a loan, you will be far more likely to get accepted, particularly if you have bad credit. Additionally, the interest and terms and conditions tend to be much better.

There are still options out there if none of the above works. The best place to look for these options is online. A number of online lenders focus specifically on people with bad credit and many of these could be suitable for you.

Focus on Results

Remember that taking out a loan is a serious commitment. You will be in debt and you will risk damaging your credit rating even more if you default on it. Hence, it may be an idea to take out two small loans and not one large one. You could then have one payment come out at the start of the month, and the other in the middle, for instance. This may make it slightly easier for you to actually meet the repayments. On the other hand, it tends to be more expensive overall.

Remember, everything is about competition and this is the same with installment loans. Lenders do have to compete with each other in order to get the most customers, because they make their
money in part by lending it to you. Hence, use this competition to your advantage and find the one that will offer you the most attractive deals or rates in order to get you to sign up with them.

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