Understanding Public Records and Mortgage Status: A Comprehensive Guide
When considering the financial health of a property or seeking to purchase one, one of the most critical queries is whether the current property owner is up to date on their mortgage. This article aims to elucidate the complexities surrounding public records and mortgage statuses, providing practical guidance on how to navigate these queries.
Public Records and Mortgage Status
The question of whether a property is up to date on its mortgage is multifaceted, and the answers can vary widely depending on where you are searching and what documentation you obtain. Public records typically do not include detailed payment histories or mortgage balances, but they can provide critical information if a property has entered foreclosure.
It is crucial to request copies of the lender's balance sheet and ledger, which will show the mortgage loan credits and debits. Relying solely on a 'payment history' or an 'instrument number' is not advisable, as these may not be accurate representations of the property owner's current financial status.
Foreclosure and Liens
Foreclosure is another significant factor that can prompt the recording of mortgage delinquencies in public records. Once a property enters the foreclosure process, the unpaid mortgage amounts and any associated fees are recorded as part of the public record.
However, it is important to note that the mortgage company is not legally compelled to disclose this information publicly until the foreclosure process is imminent or underway. Therefore, potential buyers and interested parties should be proactive in their research.
Local Registry of Deeds and Property Taxes
For a more comprehensive understanding of a property's financial status, especially in terms of unpaid property taxes, the local registry of deeds is a valuable resource. In the case of my first property purchase, I discovered that the current owners owed over $32,000 in back property taxes, which the town had already put a lien on.
While it can be challenging to find out if a property's mortgage is up to date, if the mortgage is seriously delinquent, it is likely that the town will place a lien on the property for real estate taxes before the bank takes any action.
Search Strategies
One effective method to uncover information about a property's financial status is to search the local registry of deeds online. This can provide insights into any outstanding liens or mortgages. Additionally, if you suspect that the mortgage might be delinquent, you can look for any town liens that may have been placed on the property.
Another key step is to search local county court records for a 'lis pendens', which is a legal document indicating a lawsuit. Banks will file a lis pendens when they become ready to initiate legal action against a delinquent mortgage holder. To find this information, you can search the name or address of the property in the online database.
Conclusion
Navigating the complexities of public records and mortgage statuses can be daunting, but with the right strategies and resources, you can gain valuable insights. By requesting detailed records from the lender, searching local registries of deeds, and researching county court records, you can better understand the financial health of a property and make informed decisions.
Remember, transparency and accuracy are key in these inquiries, and it's always better to be proactive and diligent in your searches. This approach will help ensure that you are making an informed decision, whether you are a potential buyer, an investor, or simply a curious individual.