Judgments, Leans
& Over-Leveraged Properties
Clearing up Judgments
or Outside Liens
A cloud lien on the title can create major troubles if you or a real estate professional are trying to sell your home. The judgmental or outsider liens act as a roadblock to completing the transactions. You have to resolve the judgment liens so that the title of your home can become clear and your home be sold easily. The real estate managers or attorneys can have the liens taken off and help complete the transactions as soon as possible.
Avoiding judgment or outsider liens can be complicated, but you can adopt some strategies to get rid of these liens.
• Invalidate your judgment lien because a lien that does not follow the procedural requirements under the law can easily be stripped from the property.
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• The simplest way to avoid judgment liens is to contact the creditor who filed the lien and ask how much it costs to satisfy the lien. Include interests, fees, and judgment costs to estimate the correct total.
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• Hire an experienced debt settlement attorney and ask them to negotiate the total to a more acceptable amount.
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• You can also file for bankruptcy to eliminate the judgment of outsiders' liens.
Over-Leveraged Properties
Property leverage is the tool real estate investors use to expand their property portfolios. Property leverage means using others' money to buy real estate. Property leverage may help you become a successful property investor, but it is not a safe choice if you're investing in real estate. When you buy a home using a leverage tool, you overextend yourself with several large loans.
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In the future, you can face the challenge of ongoing-repairs, late-paying tenants, and ongoing repairs-they all can lead your property to be over-leveraged. If you own an over-leveraged property, it would be hard for you to secure good credit in the future.
Experts say that over-leveraged properties tend to be more sensitive to change in the credit environments. You can avoid being over-leveraged in real estate by following the simple strategies:
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• Make your down payment as large as possible to keep your debt-load manageable.
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• Focus on building equity over cash flow in the early years of your journey as a real estate agent. The more equity you have, your debt loan will become more manageable.
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• Calculate the total cost before buying a real estate, including average rent, maintenance, and common renovation charges.
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• Focus on structuring your financing, which can help you grow your portfolio and reduce your leverage.