How to Find Out If There Is a Mortgage on a House

Prospective homebuyers often want to find out if the owner of the home they intend to bid on has a mortgage. People with mortgages are less likely to negotiate price reductions than people who own their homes free and clear. Having agreed to buy a house, buyers should make sure that nobody holds a lien on the home. Sometimes banks sell foreclosed homes at auctions "subject to liens," which means that the home has a second mortgage, such as a home equity line, that has not been paid off. Before entering into these auctions, prospective buyers can search public records to see what liens exist.

• 1

  Go online to the website of the county containing the home you are interested in. Most county websites have a tax appraiser section that lists the names of homeowners in the county. Search for the owner of the home that interests you by entering the physical address. Write down the owner's name and return to the homepage of the county website.

• 2

  Search the public records database on the county website for documents related to the home's owner. This database includes mortgage documents, deeds and lien information. You can browse through the records to see who owned the home before the current owner and search under the person's name for any other documents related to the home. The county records show both liens and satisfactions of liens. If you see a lien that does not have a satisfaction, it probably remains in place.

• 3

  Contact a local title company. Give the title company the address of the home you are researching. It normally costs $100 to get a title search. The title company essentially performs the same search that you did but has resources to delve deeper into records in the surrounding area. Review the title company's report to see if any liens are in place on the home.