Is A Blanket Mortgage A Specific Lien?
No, a blanket mortgage is not a specific lien. It is a mortgage that covers more than one piece of property. The term blanket mortgage is usually used in reference to investment property, such as a portfolio of rental homes or a commercial real estate portfolio.
A blanket mortgage is a lien that is secured by all the improvements on a property and does not contain any limitations on which interests in the property are bonded. If you have more than one property in your name, then you will have more than one blanket mortgage.
Most blanket mortgages contain language that specifies how much can be borrowed against it. In most cases, there are limits to how much can be borrowed, but not always; and borrowers should know what they are before they get approved for loans against their homes.
Any liens registered against your property will include only that amount of debt and not any additional amounts being secured by other properties collateralized by the same blanket mortgage. For example, if you have a $100,000 blanket mortgage and the amount of debt being secured against it is only $75,000; then the remaining $25,000 can only be used to secure another loan.
A blanket mortgage is a type of lien that is registered against your property and protects both you and your lender in case of any default by either party. The property will remain as collateral until all debts were paid off and recorded on your home’s title.
If you have several properties in your name and want to get a new lien secured by all of them, then a blanket mortgage is the best option for you. The process for applying for one will differ depending on whether or not you already own property.
Is A Mortgage A Contractual Lien?
Yes, a mortgage is a contractual lien on the property, which means that the borrower agrees to give the lender a legal claim on the property in exchange for the loan. If the borrower defaults on the loan, the lender can foreclose on the property and sell it to recoup the loan amount.
A mortgage is a type of lien, which means it is a legal right given to a creditor with the ability to hold your property as collateral until their loan is paid off. The term mortgage can be used in place of the word lien, but they have different definitions.
A fundamental difference between a mortgage and other types of liens is that there are conditions attached to it when you sign the loan document, known as a note. Typically, these conditions can be found in sections 2 and 3 of your security deed or note.
A contractual mortgage is a lien that is created by a contract, which means the lien has specific terms that were agreed upon between you and your lender.
A mortgage covers two different types of interests in real property, the fee simple and the leasehold estate. A fee simple interest includes all interests in land that you own, including all improvements made to the property.
The leasehold estate refers to only those rights you have to use the property for a specific period of time according to an agreement with someone else.
What Is The Difference Between A Lien And A Second Mortgage?
- The difference between a lien and a second mortgage is that a lien does not have to be paid off before the property is sold, but a second mortgage does.
- A second mortgage is subordinate to a first mortgage, which means it is considered a subordinate lien while the first mortgage is considered the primary lien.
- A second mortgage is a loan that is held as collateral until the first mortgage is paid off and then sold by the lender as part of the first mortgage. A lien is created by contract whereas a second mortgage is created through the transfer of money from one party to another.
- The holder of a lien may be able to obtain certain foreclosure rights if the borrower fails to repay their loan in full; however, the holder of a second mortgage does not have these same rights unless there are specific conditions included in their agreement.
- A lien is used to secure the payment of debt, which means the holder may foreclose on the property and sell it as part of their loan while second mortgage holders do not foreclose on the property.
- A lien is secured by a mortgage, which means the second mortgage operates like a security and serves as collateral for the lender, which means there will be a lien against your property when you sign the loan documents. Second mortgages are typically secured by a deed of trust or land contract on your property.
- The holder of a lien may become a creditor through an involuntary bankruptcy proceeding while holders of second mortgages have to go through informal foreclosure proceedings before they are able to obtain these rights against your home.
- A second mortgage only secures the payment of debt through its holder; therefore, there are no rights that can be exercised if the borrower does not pay their loan in full.
A second lien is a lien that has been recorded against your property but does not give you any additional rights to seize or sell your home in case you default on your mortgage while second mortgage holders have the right to receive a clear title and foreclose on the property in certain circumstances.
The holder of a second mortgage has the right to secure their loan through a deed of trust or land contract. A second mortgage is secured by an equitable lien, which means they do not have any rights that can be used against your property if you default on your loan; however, this right is given as part of their agreement with you and/or whoever owns your property.
How Do I Know If My Mortgage Is A Lien?
A mortgage is considered a lien if the loan is secured by your property, which means the lender, has a legal right to your home in case you default on your loan. Knowing that your mortgage is a lien can be important because it gives you and your lender rights, which can be exercised if there is a default on the payment of their loan.
The following information will help you to determine whether or not your mortgage is becoming a lien:
- If there are any due dates for repayments outlined in the loan agreement; then, this will indicate that it can become a lien.
- If the loan agreement gives you or your lender certain foreclosure rights, then it is a lien because it gives you and your lender the ability to foreclose on the property in case of default.
- If you have any liens, judgments or tax levies against structures that are separate from your house; then, this can indicate that your mortgage is a lien because these may be recorded against your property separately.
- If there are any other creditors that hold liens on properties associated with you, such as one of your business properties; then, this will also indicate that your mortgage is a lien because they would have to release their claim before they could record their lien against your home.
- Finally, if there are any other mortgage documents that include a lien or mortgage clause in their remarks, then this will indicate that your original mortgage is a lien because another document cannot record against documents previously recorded by another lender or party.
Is A Judgment Lien Subordinate To A Mortgage Lien?
Yes, when it comes to the priority of payment in the event of a foreclosure, a judgment lien is subordinate to a mortgage lien. This means that if a borrower defaults on their mortgage, the lender can foreclose on the property and the judgment lienholder will only be able to collect payment after the mortgage lender has been repaid in full.
In some cases, the judgment lienholder may not be able to collect anything if the sale of the foreclosed property does not generate enough proceeds to cover the outstanding debt.
If you have a judgment lien against the property that is being sold, this lien may be subordinate to the mortgage lien. This can happen if the lender has filed a foreclosure proceeding against your home which means they have a right to seize your home and any equity in it as part of their loan.
If there has been a prior judgment lien against your home, it will remain recorded after it is foreclosed on; however, you will still be responsible for paying off any past due debt in addition to the mortgage payments being made. This can be an issue if the balance owed on the mortgage is not paid in full because you will still be liable for the judgment.
A judgment lien may also be subordinate to other liens such as a secondary mortgage or mechanic’s lien; however, this will depend on the priority date of each loan and how long it has been since recording.
A judge must consider how long it has been between each lien and how much time there would be for one to obtain their rights against your home, which is considered the first to record usually carries priority over those who have recorded their claim more recently.