Can a lien be cleared up at closing with cash from the purchase?

Can a lien be cleared up at closing with cash from the purchase?

Rental Property Investor · Member since 2021 · 423 posts · 190 votes

I put a property under contract for $150k cash. There is a $90k lien from a HELOC. He wants to use the cash from the purchase to clear up the lien. Can this be done at closing through the RE attorney or title company?

I wouldn't be paying anything out of my pocket. He'd essentially only get $60k cash at closing because the other $90k would be paying off the HELOC.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    3y

    Yes, that how All mtgs/liens are paid. 

  • Real Estate Broker · Denver/Castle Pines/Colorado Springs, CO · Member since 2021 · 248 posts · 136 votes
    3y

    So HELOC is acting as only Lein on the property? No initial mortgage? Should be good in all regards then. Title company will clear up any questions if you give them a ring though!

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