Seller child support lein

7 Replies

I have a property under contract ($31k) with 9 heirs, one of them has a child support lein for about $55k. Is there a way for this heir to relinquish his rights to the property so we can wholesale it? I have a buyer ready at $37k,  but we don't know how to get around the child support lein. They want it paid in full before the sell. Any and all suggestions welcome. 

@Spencer I. Honestly, if the lien is attached to the property you're trying to buy, it can only be cleared by being paid off or getting proof that it's already paid off. Sorry, but there's really no other way to get around that. I run into similar situations doing mortgage financing. 

If you have a title company involved, they can help determine if it's a legitimate lien. 

Have you verified it is a legit lien?  A property I own got one attached to it for some one else that happened to have the same name (although spelled differently).

Originally posted by @Shawn Thom :

Have you verified it is a legit lien?  A property I own got one attached to it for some one else that happened to have the same name (although spelled differently).

 Yes. We verified with the last 4 of his ssn. He is on a payment plan and is paying it every month. I think he wasn't paying at first, they put a lein on him, and put him on a payment plan. Would they be willing to lift the lein even though he is paying it down?

Originally posted by @Spencer I. :
Originally posted by @Shawn Thom:

Have you verified it is a legit lien?  A property I own got one attached to it for some one else that happened to have the same name (although spelled differently).

 Would they be willing to lift the lein even though he is paying it down?

 You should have the part-owner ask his social worker that question.

@Spencer I. , They probably won't lift the lien, but you could try this:  Have the seller who owes the debt contact the lien holder and ask if they will issue a release on the condition that all of his proceeds from the sale go to paying down the lien. 

Honestly, this sounds like a nightmare to wholesale. It'd be hard enough to close it  in a traditional way.

Originally posted by @Tyson Taylor :

@Spencer I., They probably won't lift the lien, but you could try this:  Have the seller who owes the debt contact the lien holder and ask if they will issue a release on the condition that all of his proceeds from the sale go to paying down the lien. 

Honestly, this sounds like a nightmare to wholesale. It'd be hard enough to close it  in a traditional way.

 I thought the same, but we have one good sibling who brought everyone on board with the sale. Everything was ready to close up until this issue. 

@Spencer I. , I just reread your original question.  Everyone, including me, focused on getting the child support lien holder to accept a partial payment and allow the sale.  Your original question focused on the part-owner in question relinquishing his rights to the house to allow the sale to take place unencumbered. 

Looking at it that way, I don't see why that one part-owner can't just sign a quit-claim deed and give up his portion of the home.  Once his name is off the deed list of owners, the lien should (maybe, I'm not lawyer) no longer apply.  Possibly, the other part-owners might have to sign an affidavit (or something) assuring the court that they won't circumvent the lien by paying that one part-owner his share of the sale off the books. You may need to get a real estate lawyer involved and it might cost a few hundred dollars, but that seems like an option worth pursuing.

Good luck.

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