Mortgages

Question 1

VA Lien Theory

Answer 1

Borrower will hold the deed to the real estate property for the life of the mortgage.

The mortgage agreement serves as the lender’s lien on the property until the loan is paid back completely

Question 2

Deed of Trust

Answer 2

Trustee who sells the property after the buyer defaults may first use proceeds to pay expenses of executing the trust, including a reasonable commission for themselves

Question 3

Mechanic’s and Materialman’s Liens

Answer 3

• To perfect, a memo claiming the lien must be filed in the clerk’s office where the property is located no later than 90 days from the last day of the month in which the material/labor was furnished.
• A suit to enforce the perfected lien must be brought within the later of:
• 6 months after filing, or
• 60 days after work was completed.