Grand Rapids, MI asked in Real Estate Law for Michigan

Q: Will a mortgage lender find out about a voluntary lien on home? If so, will they do anything about it?

A relative of mine bought a 334k home in August. The equity of his old home that he had sold was supposed to go to his kids, but instead of giving it to his kids he put the equity into his new home which was 91k. When his kids found out that he had done that, they hired a lawyer and came to an agreement with their father to sign a statement of a lien on his new home for the 91k. The lien states that the 91k belongs to the kids, but it also says that the father is allowed to transfer the lien to a new home if he decides to sell the house he had bought in August. He signed the lien and it is now recorded with the register of deeds. He is wondering how it is going to affect his credit, his mortgage on that house or any other legal consequences in the future because that lien will stay with him until he dies or decides to pay it off. Also, can his kids still require him to sell the home to pay off the lien?

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1 Lawyer Answer
David Soble
David Soble
  • Farmington Hills, MI
  • Licensed in Michigan

A: Liens are placed against homes all the time. There are judgment liens, tax liens, construction or contractor liens to name a but a few. Provided that a filed lien is subordinate to your mortgage lender's priority lien, they should be no issue because your first mortgage lender has first priority in the security, which is the home. See for more information.

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