When we include records where the property has “Low Liens”, that means the are liens on the property but they are low enough to where there is still plenty of surplus left-over if those lien holders make a claim. Here is come criteria we apply to the method of determining if these records are good and included on the Friday Report:
We do not ever include records that have a Federal Lien, no matter what the amount. Counties will not pay out claims to property owners before lien holders. Other liens expire and cannot take the surplus. Federal Liens never expire. Therefore, if there is a Federal Lien, you are at the mercy of when and IF they ever put in a claim.
Governments typically DO put in a claim on time. We look up the amounts of any Governmental Liens (Owed to the City, County or State) and if they are low enough to where there will still be good surplus, we will include the record on the Friday Report.
We do not ever include records that have a Mortgage. If there is a mortgage, it is best that you wait out the lien holder deadline before pursuing.
HOA OR COA
We do not ever intentionally include records where the property is known to be in an HOA or COA. Associations are not required to have their lien on record before the tax auction date. Therefore, after the auction, they can swoop in and put in a claim. These liens would be unknown to us since they did not file their lien document ahead of time and it did not show up in the public records.
Now, when we say “intentionally”, we do our best to determine if the property is in an HOA but sometimes that is not known to use either. COA’s are easier to determine because the property address will include a “Unit #” so we know it’s a Condo.
If there is a judgment that is owed to a potential client of yours, we will include that record. The property owner may or may not be a good candidate for claiming the surplus, but a Judgment holder would be. The right for a judgment holder to put a claim on surplus expires after 10 years of filing, so we make sure to check the filing date as well.