Condo Association Lien For Dues Extinguishes First Mortgage Lien — The Ramblings of a Title Man

A recent decision by the District of Columbia Court of Appeals is bringing new attention to the priority of condominium and mortgage liens. You may have heard the term “concurrent liens” in the past. This term is often used to describe liens on a property that have “equal” priority and lack the ability to prime one another in a foreclosure action. Taxes are most often cited as this example. A foreclosing lender of a mortgage lien must always pay the taxes and cannot cut out or extinguish a previously unpaid tax bill. Similarly, a tax authority cannot cut out or extinguish a mortgage lien when a tax lien is foreclosed. Therefore the liens are called “concurrent” because they have equal priority.

There are two types of title insurance: owner’s title insurance, called an Owner’s Policy, and lender’s title insurance, called a Loan Policy. Most lenders require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases as you pay down your loan and eventually disappears as the loan is paid off.

The closing itself takes about one hour and tends to be rather busy with much to be done and many details to be coordinated. During the closing, numerous documents must be explained and signed, funds must be received and disbursed, last minute questions on the condition of the property and operation of systems must be answered and the keys must be delivered. In many instances, buyers need to coordinate settlement with the arrival of their movers and cannot afford any delays. Choosing a reputable, experienced title company is crucial to a smooth settlement.

You Pay for What You Get.

Your purchase of a title insurance policy is required by your lending institution. Today’s nationwide mortgage practices have made title insurance a necessary part of the residential closing and escrow process in most cases in Ohio.

Losing a home is a cruel thing, but life can be cruel—even to those destined for greatness. Abraham Lincoln was born in a meager, one-room cabin on the Big South Fork of Nolin’s Creek near Hodgenville, Kentucky. It had a dirt floor, one window, and a sticky-clay chimney. Lincoln’s father, Tom, had paid $200 for the cabin and 300 acres of unproductive land. It wasn’t much, but it was home and the young family’s only chance for a decent life.