Question

Please provide answers and discussion on all of the following:

Which liens get paid first in foreclosure? Why?

How do General Liens differ from Specific Liens? Why is the distinction made?

Find the real estate tax rate in your county, and show us what the taxes would be on a $100,000 home in your area.

Answer 1

The term lien simply refers to a technique to secure a debt against a property so that the correlation has some priority particularly over the offending owner’s unsecured debts. If an individual owes money to someone then that debt can be secured by recording a lien and that debt is affixed with the property as a collateral security for the debt. If the borrower fails to pay the debt then lien possessor can compel the sale of the property in a foreclosure action in order to get paid.

Lien priority in US is based exclusively on who records their lien first gets priority over all subsequently recorded liens and as per Civil Code Section 1367(d) a lien formed pursuant to subdivision (b) shall be preceding to all other liens recorded subsequent to the notice of assessment excluding the declaration that may provide for subordination to any other liens and encumbrances.

When an individual is permitted to keep the goods belonging to another person until all dues are paid is called general lien whereas a specific lien entails the right of preservation and custody of specific goods until the claims connected with those goods are apprehended and realized.

Furthermore general lien refers to the right of a person to keep or detain as security any movable property which belongs to some other individual against a general liability until the total outstanding dues of the holder is repaid whereas the specific lien is referred as a right of an individual to take into custody particular goods bailed to him as security for non-payment of outstanding dues.

Thus in conformity with the objective of bailment bailee has a right of the specific lien until he gets reimbursement for the services delivered provided the services are given in totality within the stipulated time.

Property taxes in California limit the general property taxes rates (provided not collected for special purposes) to 1% of a property’s market value and secondly it confines the increase in assessed value to 2% per annum.

California property taxes are principally based on the purchase price of the property thus when you procure a house the assessed value is equivalent to the purchase value and from there the assessed value increases every year by the rate of inflation with a cap of 2%.on increase

Thus property tax based in California =

$ 100,000 x 1.25% = $ 1,250

Assessed value of property x 1.25% (base rate of 1% and additional local taxes of 0.25%)