Liens

• A deed is an instrument that releases your interest in a property and transfers it to another person or company. If you assign a deed to another person, any valid lien will remain with the property, but the debt remains with the original borrower. If you accept title to a property without verifying that there are no undisclosed liens against it, you will not have a clear title to the property. If you want to refinance or sell the property and the lien is unpaid, you or the grantor that transferred the property to you must pay the amount due on the lien. You cannot be relieved of your liability by deeding your property to another person.
  
  

Title

• You can confirm that the property does not have liens against it by checking records at your local county recorder's office. It is possible that you will not detect a lien, even though it exists. You can eliminate this risk if you go through an escrow company. The escrow company will ensure that all of the documentation is correct and it will order a title policy to protect you from defects and liens on the title. The title company will issue a title policy guaranteeing this in writing.
  
  

Escrow Company

• If you transfer your house using an escrow and title company they will locate any liens against your home. The escrow company will require you to pay the lien prior to, or during closing. If you are selling your home and there is a lien on it, the buyer will pay off the lien through the escrow company. The proceeds will come from sale funds wired from the lender. The lender will not allow the new loan to record unless the escrow company confirms that the lender is in first position and the existing lien is paid.
  
  

Considerations

• There are many reasons you may want to transfer the title to your home. If it is because you are having financial problems, you should look into alternatives. If you have a mortgage payment that you cannot afford, talk to your lender to see if you can get a loan modification. If not, see if it will agree to a short sale. This will allow you to stay in the property while it is for sale.