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  1. #1

    Thumbs down Paying Off Liens Against Real Estate

    My question involves real estate located in the State of: Ohio When land is purchased for development, do any of the parties who have a vested interest, have a right to pay off liens on that property, so that the development can go forward? This is a case where an expedited annexation occurred.

  2. #2
    Join Date
    Nov 2013
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    Default Re: Subrogation

    I can't think of anything that would prevent a vested owner or investor from paying off any lien on any property. The lien holder doesn't care who pays off the lien . The problem becomes how one would recover the money or interest from other owners or investors. I don't see how an expedited annexation would change anything once approved.

    Are these tax, mortgage, or judgment liens?

  3. #3

    Default Re: Subrogation

    The expedited annexation would put a fire under a property owner to get the lien paid off, so they could sell the property and make all those millions. In Mortgage elec. Registration sys.v. Church 2009 U.S. District Lexis 99595.(W.D. Mich.2009), it appears that equitable subrogation is not entitled to a person loaning them money to pay off an existing loan . I am not an attorney, but I thought that indicated that maybe liens had to be paid by someone who didn't have a dog in the race.

    This is a mortgage lien.

  4. #4
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    Default Re: Subrogation

    Quote Quoting therightstuff
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    The expedited annexation would put a fire under a property owner to get the lien paid off, so they could sell the property and make all those millions. In Mortgage elec. Registration sys.v. Church 2009 U.S. District Lexis 99595.(W.D. Mich.2009), it appears that equitable subrogation is not entitled to a person loaning them money to pay off an existing loan . I am not an attorney, but I thought that indicated that maybe liens had to be paid by someone who didn't have a dog in the race.

    This is a mortgage lien.
    Why would you think, that a lien should or would be paid by someone who "didn't have a dog in the race"? Someone who didn't have any interest in the property or project would have no interest in paying the lien. Anyone who did pay off the lien and needed to get their money back (one way or another) would certainly put together a contract that would need to be honored.

  5. #5
    Join Date
    Nov 2013
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    Default Re: Subrogation

    Quote Quoting therightstuff
    View Post
    The expedited annexation would put a fire under a property owner to get the lien paid off, so they could sell the property and make all those millions. In Mortgage elec. Registration sys.v. Church 2009 U.S. District Lexis 99595.(W.D. Mich.2009), it appears that equitable subrogation is not entitled to a person loaning them money to pay off an existing loan . I am not an attorney, but I thought that indicated that maybe liens had to be paid by someone who didn't have a dog in the race.

    This is a mortgage lien.
    So your real question is can one of the interested parties gain an interest in the security or obligation held by the creditor by paying off the lien, is that correct? The question is not can an interested party pay off a lien on property so it can be sold.

    Loaning someone money to pay off a debt really has nothing to do with equitable subrogation. Paying off the obligation does.

  6. #6
    Join Date
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    Default Re: Subrogation

    If a person simply pays off the underlying debt allowing for a lien they gain nothing, including a right to seek compensation from the person the lien is against unless there is a contract creating rights of some sort.


    In the end, the lien holder doesn't care who pays the debt. I could send the creditor the money and they apply it to the debt. It would give me no rights in the property though.

    A person can often purchase the paper creating the underlying debt after which they would be the lien holder and able to take any action the lien holder is allowed to take by law. You would have to speak with the lien holder to ask if they would be willing to sell the debt to you.

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