Lien Positions and Seller Financing Transactions


You may have heard of the term lien position or lienholder in a real estate or mortgage transaction. This article discusses lien positions and why attention should be given to them when considering certain seller financing agreements. To understand what a lien position is, let’s start with a little bit of background on how a mortgage transaction works. Most individuals buying their first home aren’t likely to have saved the large amount of money needed to pay for the property in cash. Even if they did, it wouldn’t make much financial sense to sock the entire [...]