The state of Tennessee affords special status to liens against individuals for back child support owed. Tennessee law (TCA 36-5-901 et seq) specifically creates a lien against all property owned by an individual who owes back child support which is the subject of collection efforts by the Department of Human Services (DHS), or its contractors. In order to perfect the lien (i.e. make it effective against third parties), DHS must file a notice of the lien in the public records in the county where the property sits. Unlike federal tax liens or judgment liens, child support liens have a special status relative to purchase money mortgages. As explained in a previous tip, the federal government has taken the position that even if its federal tax lien is filed in the public records before a purchase money mortgage, it will allow the lien of the purchase money mortgage to take priority over it. The same holds true for a judgment lien; state law subordinates its priority to that of a purchase money mortgage. But a child support lien is different. If a prospective buyer has a perfected child support lien against him, he cannot buy property in Tennessee without discharging (i.e. paying off) that lien. So if you are working with a buyer, or seller, and you become aware of an outstanding child support lien, please contact your closing agent immediately to try to solve the problem, as it will stop a closing in its tracks.
As always, your Realty Title representative is available to answer any questions on this.
Please click here to print this tip: http://tinyurl.com/3vc9a9j
Posts
1 comments:
One of the most efficient ways to save money on your home loan is refinancing. Refinancing also allows you to join your debt and access cash to fund the renovation of your home.
Post a Comment