Uncovering Hidden Liens and Claims: The Ghost in the Machine (or the Deed Book)

TL;DR: Hidden liens—unpaid mechanic’s bills, old mortgages, forgotten judgments—stick to property, not just people. Without a thorough title search, buyers unknowingly inherit previous owners’ debts. Eastern KY Title searches decades of Pike and Floyd County deed books to uncover these “ghosts” before closing, protecting your investment with comprehensive title insurance backed by Stewart Title.

You found your dream home in that tree-lined neighborhood near downtown Pikeville. The seller seems honest. The price is right. The inspection came back clean. You’re ready to close.

But here’s what keeps me up at night: that charming 1960s ranch has changed hands seven times since it was built. Each transaction left a paper trail in the Floyd County Clerk’s office. And somewhere in those dusty deed books—maybe on page 247 of Book 438 from 1998—there’s a lien that never got released. A $12,000 roofing bill. An unpaid child support judgment. A second mortgage from a bank that doesn’t even exist anymore.

The worst part? That debt just became your problem.

After 30 years of practicing law and handling thousands of closings across Eastern Kentucky, I’ve learned this universal truth: hidden liens are like termites in the walls—invisible until they’ve done real damage. The difference is, these pests live in the deed books, not the crawlspace.

What Exactly Is a “Hidden Lien”? (And Why Should You Care?)

A lien is a legal claim against property that secures a debt. Think of it as a financial anchor weighing down your deed. When someone owes money—whether it’s a contractor, the IRS, a credit card company, or an ex-spouse—creditors can file a lien against real property to ensure they eventually get paid.

Here’s the problem: liens attach to the property itself, not the person. If the previous owner owed money when they sold the house, that debt transfers with the deed unless it’s properly cleared. You might be the most responsible person in Pike County, never missed a payment in your life, but you just bought someone else’s financial baggage.

Most liens are public record, filed with the county clerk. But “public” doesn’t mean “obvious.” In older neighborhoods throughout Pikeville and Prestonsburg—places where homes have traded hands since the 1950s and ’60s—these liens get buried under decades of documents. A home built in 1963 might have five different mortgage recordings, three quit-claim deeds, two estate settlements, and one forgotten mechanic’s lien from 1997. All in different deed books. All requiring individual examination.

That’s where the ghosts live.

The Real-World Scenarios That Haunt Eastern Kentucky Properties

Let me walk you through three situations we’ve encountered in the past 18 months. These aren’t hypothetical examples from a textbook—these are actual title problems we’ve solved for families right here in our service area.

The Roofer Who Never Forgot

A young couple found a beautiful home in Floyd County. Built in the 1970s, well-maintained, good bones. The previous owner had lived there for eight years before relocating for work. Everything looked clean.

Until we ran the title search.

Buried in the records: a mechanic’s lien filed by a local roofing contractor three years before the sale. The previous owner had hired the roofer to replace the entire roof—about $15,000 worth of work—and paid everything except the final $3,200 invoice after a dispute about flashing installation. The roofer did exactly what he’s entitled to do under Kentucky law: he filed a lien.

The seller genuinely didn’t remember. The dispute had been years ago. But that lien sat in the deed books like a landmine, waiting for the next transaction.

Without our title search, that $3,200 debt would have transferred to the buyers. They would have discovered it months later when they tried to refinance or sell—at which point they’d be writing a check for someone else’s roof.

We contacted the roofing company, negotiated a settlement (the owner had since retired), and cleared the lien before closing. The buyers never lost a night’s sleep over it.

The Child Support Judgment Nobody Mentioned

Here’s one that surprised even me, and I’ve been doing this since 1993.

A seller in Pike County swore up and down that he had no debts. Credit report was clean. He seemed genuinely bewildered when we asked about any outstanding judgments.

Our title search revealed a child support judgment from twelve years earlier—$8,500 plus interest, now ballooned to over $11,000. He’d had spotty employment back then, fallen behind, and the court entered a judgment. That judgment attached to any real property he owned.

He’d since straightened his life out, remarried, and honestly thought the matter was “handled” because his wages weren’t being garnished anymore. But judgments don’t disappear just because you’re current on payments. They have to be formally satisfied and released—paperwork filed, records updated, courthouse blessed.

Without clearing that judgment, the buyer would have purchased property with an $11,000 cloud on the title. The Kentucky Cabinet for Health and Family Services doesn’t care who owns the house now—they care about getting paid.

As Lindon puts it, “People assume ‘paid off’ means ‘gone.’ But in title work, nothing’s gone until the paperwork proves it’s gone.”

We coordinated with the Cabinet, obtained proof of payment, filed the satisfaction, and cleared the judgment. The closing proceeded without issue.

The Phantom Mortgage from 1998

This one’s my favorite because it perfectly illustrates why local knowledge matters.

A property in Prestonsburg—a classic older home that had been in the same family for generations—was finally being sold after the matriarch passed away. The estate was clean, the heirs were cooperative, and everyone wanted a smooth closing.

During our title search, we found a second mortgage from 1998 with a local bank that had been absorbed, merged, and renamed twice since then. The loan was for $22,000. The heirs knew their mother had paid it off years ago—they’d helped her celebrate burning the payment book.

But the release was never recorded at the Pike County Clerk’s office.

Finding that bank, now operating under a completely different corporate structure, tracking down records from 25 years ago, and obtaining a belated release required three weeks of phone calls, emails, and one notarized affidavit from a retired bank vice president who remembered the account.

That’s the kind of detective work you can’t outsource to a call center in Ohio. You need someone who knows the local institutions, remembers the mergers, and can track down retired bankers at the Pikeville Walmart because their grandson plays baseball with your nephew.

The release was recorded. The title was cleared. The heirs got their money.

Why Hidden Liens Are More Common in Eastern Kentucky

Our region has some unique characteristics that make hidden liens particularly problematic:

Long ownership histories: Many properties in Pike and Floyd Counties have been in the same family for 30, 40, even 50 years. When these properties finally sell, the title history is extensive—and so are the opportunities for forgotten liens to surface.

Multiple ownership transfers: Older neighborhoods in Pikeville and Prestonsburg have seen homes change hands many times, especially as the local economy shifted over the decades. Each transfer creates more paperwork, more opportunities for recording errors, and more potential for liens to slip through the cracks.

Coal and mineral rights complexity: Eastern Kentucky’s mining heritage means many properties have severed mineral rights, coal rights, and surface rights. This creates additional layers of title complications that out-of-state title companies often miss or misunderstand.

Local institutional changes: Banks merge. Contractors retire. Government offices consolidate. A lien filed in 1995 might reference an entity that no longer exists under that name, making it harder to clear without local institutional knowledge.

Informal arrangements: Our region has a strong tradition of handshake deals and family arrangements. Sometimes money changed hands, debts were paid, but the formal paperwork never made it to the courthouse. That informality creates title problems decades later.

How We Actually Find These Ghosts (The Title Search Process)

When someone asks what I do for a living, I usually say “professional ghost hunter.” It gets a laugh, but it’s surprisingly accurate.

A comprehensive title search isn’t a quick computer database query. It’s a methodical examination of public records going back decades—sometimes generations—looking for anything that could affect property ownership.

Here’s what we do for every single transaction:

Step 1: Chain of Title Examination

We trace every owner of the property going back at least 30-60 years. This means examining deed books, estate records, divorce decrees, bankruptcy filings, and anything else that might have transferred or affected ownership. For older properties, we often go back to the original patent or the first recorded deed.

Step 2: Lien and Judgment Search

We search for any recorded liens, judgments, or encumbrances against the property and against every individual who’s owned the property during our search period. This includes:

• Mortgages (first, second, and any additional liens)
• Mechanic’s liens from contractors
• Tax liens (federal, state, and local)
• Judgment liens from lawsuits
• HOA or condo association liens
• Child support or spousal support judgments
• IRS liens and state revenue liens

Step 3: Property Tax Verification

We verify current property tax status with the Pike County or Floyd County PVA and confirm there are no delinquent taxes, special assessments, or drainage district fees that could become the buyer’s problem.

Step 4: Legal Description Verification

We confirm the legal description matches the physical property, check for boundary disputes, verify easements, and ensure mineral rights are properly documented (crucial in Eastern Kentucky).

Step 5: Review and Exception Analysis

We analyze everything we’ve found and create a preliminary title report that identifies any “exceptions”—issues that must be resolved before we can issue clear title insurance.

This process takes time. It requires expertise. And it absolutely cannot be rushed.

Think of it like buying a used truck: you check under the hood to make sure the engine isn’t blown, the transmission shifts smoothly, and the frame isn’t rusted through. We do the same thing with the property’s title—we check the financial engine to make sure it’s clean before you sign on the line.

The Four Types of Hidden Liens That Catch Buyers Off Guard

Not all liens are created equal. Some are easy to spot and clear. Others require serious detective work. Here’s what we see most often:

1. Mechanic’s Liens (The Contractor’s Revenge)

Kentucky law gives contractors, subcontractors, and material suppliers the right to file a mechanic’s lien if they’re not paid for work on a property. These liens are powerful—they take priority over many other claims, including mortgages in some cases.

The problem? Contractors can file a lien up to six months after completing work. A seller might hire a roofer in March, close on the sale in May, and then the roofer files a lien in August after realizing the final invoice was never paid. Now the lien attaches to property the seller no longer owns.

Red flag warning: Any property that’s had recent major improvements (roof, HVAC, addition, septic system) needs extra scrutiny. We verify that all contractors were paid and no mechanic’s liens were filed.

2. Judgment Liens (The Court’s Memory)

When someone loses a lawsuit and owes money, the court enters a judgment. That judgment automatically attaches to any real property the debtor owns in that county. Judgments can come from:

• Unpaid credit card debt
• Medical bills
• Child support or spousal support
• Personal injury lawsuits
• Contract disputes
• Unpaid taxes

Judgments typically last 15 years in Kentucky and can be renewed. A judgment from 2010 could still be active in 2025 if it was properly renewed—and many people don’t even remember they have them.

3. Tax Liens (The Government Always Gets Paid)

Federal, state, and local tax liens are particularly nasty because they take high priority and accrue interest. We’ve seen:

• IRS liens for unpaid federal income taxes
• Kentucky Department of Revenue liens for unpaid state taxes
• County property tax liens
• Special assessment district liens

Tax liens don’t go away just because property changes hands. The IRS doesn’t care if you’re the new owner—they want their money, and they have first position to get it.

4. Mortgage Releases That Never Got Recorded

This is more common than you’d think, especially with older loans from local banks or credit unions. The loan gets paid off, the borrower gets a letter saying “congratulations, you’re debt-free,” but nobody ever files the formal release at the courthouse.

Years later, that satisfied mortgage still shows up in the deed books as an active lien. Tracking down the current lender (after mergers and acquisitions), obtaining documentation, and recording a belated release can take weeks.

As Lindon says, “The most frustrating problems aren’t the big dramatic disasters—they’re the paperwork that somebody forgot to file in 1997.”

What Happens If You Skip the Title Search? (Spoiler: Nothing Good)

I’ll be blunt: buying property without a title search is financial malpractice. Here’s what you’re risking:

You inherit all prior liens and debts. That $15,000 unpaid contractor bill? Yours now. That $8,000 child support judgment? Congratulations, you just adopted someone else’s family obligations. The property tax bill from three years ago? Welcome to your new problem.

You can’t get clear title insurance. No reputable title insurance company will insure a property without a thorough title search. And without title insurance, you can’t get a mortgage—which means you’re paying cash for a property that might have massive hidden debts.

You can’t sell or refinance later. When you eventually want to sell or refinance, the buyer’s title company will run their own search. They’ll find all the problems you missed. Now you’re in the worst possible position: you need to clear liens you didn’t know existed, while trying to close a transaction that’s falling apart.

You’re personally liable for secured debts. Liens against the property become your legal responsibility. Creditors can foreclose, sue, or put additional liens on the property until they’re paid. Your credit score, your equity, and your financial stability are all at risk.

You waste time and money fighting battles you didn’t start. Instead of enjoying your new home, you’re calling lawyers, negotiating with creditors, and spending thousands on problems that should have been caught before you ever signed the deed.

The cost of a proper title search and title insurance—typically 0.5% to 1% of the purchase price—is the best money you’ll ever spend in a real estate transaction. It’s not optional. It’s not negotiable. It’s the foundation of property ownership.

How Title Insurance Protects You From Financial Ghosts

Here’s where we earn our keep.

Title insurance is fundamentally different from other insurance. Your car insurance protects against future accidents. Your homeowner’s insurance covers future damage. But title insurance protects against past events that you didn’t know about when you bought the property.

When Eastern KY Title issues a title insurance policy backed by Stewart Title, we’re making you a promise: if someone comes forward with a valid claim against your property—a hidden lien, a forged deed, an undisclosed heir, a recording error—we’ll defend your ownership and cover the financial loss.

Our title insurance covers:

• Hidden liens and encumbrances that weren’t discovered during the search
• Errors or omissions in the title search itself
• Forgery, fraud, or impersonation in prior deeds
• Undisclosed heirs claiming ownership
• Recording mistakes at the county clerk’s office
• Boundary disputes and survey errors
• Easements that weren’t properly disclosed

The policy remains in effect for as long as you own the property, with no recurring premiums. You pay once at closing, and you’re covered forever.

More importantly, Stewart Title’s financial backing means you’re protected by one of the largest and most respected underwriters in the industry. If there’s a claim, you’re not dealing with a small local company that might fold under pressure—you’ve got serious institutional support.

We don’t just sell you insurance and walk away. If a problem arises, we handle it. We negotiate with creditors. We track down missing documentation. We coordinate with attorneys. We resolve the issue so you can sleep at night.

That’s the difference between choosing a title company that treats you like a transaction number and choosing one that treats you like a neighbor.

Red Flags That Should Make You Demand a Deeper Title Search

Most properties have clean titles. But certain situations require extra scrutiny:

• Properties that have changed hands frequently in a short time period (multiple sales in 5-10 years)
• Estate sales where the property is being sold after an owner’s death
• Divorce-related transfers where one spouse is deeding property to the other
• Properties with known major repairs or improvements in recent years
• Foreclosures or short sales where the previous owner was in financial distress
• Properties in older neighborhoods where homes have been standing since the 1950s-1970s
• Seller who inherited the property rather than purchasing it themselves
• Any property with coal or mineral rights issues (especially common in Eastern Kentucky)
• Properties sold “as-is” without a full disclosure statement
• Cash sales where the seller is pushing to close quickly without normal contingencies

If you see any of these red flags, slow down. Insist on a comprehensive title search. Ask questions. Don’t let anyone pressure you into skipping due diligence because “everything looks fine.”

Everything looked fine on dozens of properties I’ve worked on—until we actually examined the deed books and found the ghosts hiding in plain sight.

Your Action Plan: How to Protect Yourself

Here’s what you need to do when buying property in Eastern Kentucky:

1. Hire a qualified title company from day one.

Don’t wait until a week before closing. Engage a title company as soon as you have a ratified purchase agreement. The earlier we start the search, the more time we have to resolve problems before closing.

2. Insist on both lender’s and owner’s title insurance.

If you’re getting a mortgage, your lender will require lender’s title insurance. But that only protects the bank. Spend the extra few hundred dollars for owner’s title insurance that protects you.

3. Review the preliminary title report carefully.

When we complete the title search, we’ll provide a preliminary report listing any issues. Read it. Ask questions. Make sure you understand every exception and how it affects your ownership.

4. Budget time for problem resolution.

If we find issues, clearing them takes time. Contacting lienholders, negotiating payoffs, obtaining releases, and recording documents can take weeks. Build buffer time into your closing schedule.

5. Don’t wire money until the title is clear.

This should go without saying, but I’ll say it anyway: never send money for a real estate transaction until you have confirmation that all liens and claims have been resolved and the title is insurable.

6. Work with local experts who know Eastern Kentucky.

A national title company based in Delaware doesn’t understand Pike County deed books, Floyd County mineral rights, or the local institutional history that makes our region unique. Local knowledge matters.

Why Eastern KY Title Does This Better

I’m not going to tell you we’re the only competent title company in Eastern Kentucky. That would be insulting to our competitors, some of whom do good work.

But here’s what makes us different:

We’re local, and we’re staying local. Lindon Gullett isn’t building a regional empire. We’re not trying to do 500 closings a month across three states. We’re focused on Eastern Kentucky—specifically on serving Pike County, Floyd County, and the communities we call home. That means we know the local deed books, the local institutions, and the local quirks that affect title work in our region.

We’re attorney-led. Lindon is an experienced title attorney. I’m a practicing attorney with 30+ years of experience. When we find a problem, we don’t have to send it up the chain to corporate counsel in another state—we solve it ourselves, immediately, with the full weight of our legal expertise.

We’re backed by Stewart Title. All our title insurance policies are underwritten by Stewart Title, one of the largest and most respected title insurance underwriters in the nation. You get local service with national financial backing.

We compete on quality, not volume. We’re the “Rocky” of title companies—scrappy, nimble, and effective. We don’t win by being the biggest or doing the most closings. We win by being thorough, by caring about the details, and by treating every closing like it’s our own family buying the property.

We don’t do sloppy work. Period. We search deed books by hand when necessary. We make phone calls to track down information. We spend the extra hour verifying something that seems off. Because in title work, “probably fine” isn’t good enough.

We explain things in plain English. No legal jargon. No corporate speak. We talk to you like a neighbor explaining something over coffee, not like a lawyer billing by the hour. You’ll understand what we found, why it matters, and what we’re doing to fix it.

That’s not marketing spin. That’s how we actually operate.

The Bottom Line: Ghosts Are Real, But So Is Protection

Hidden liens are like termites, carbon monoxide, or foundation cracks—invisible problems that cause very visible damage if you ignore them. The only difference is that these ghosts live in the deed books at the Pike County Courthouse or the Floyd County Clerk’s office, waiting for the next unsuspecting buyer to take ownership.

You wouldn’t buy a home without an inspection. You wouldn’t skip the appraisal. Don’t skip the title search either.

For a one-time cost of less than 1% of your purchase price, you get:

• A comprehensive search of public records going back decades
• Resolution of any title problems before you take ownership
• Title insurance that protects you for as long as you own the property
• Peace of mind that you’re not inheriting someone else’s debts
• Professional support if any issues arise after closing

The alternative—skipping the title search to save a few hundred dollars—could cost you tens of thousands down the road, destroy your equity, and turn your dream home into a financial nightmare.

I’ve been doing this work since before most people had email. I’ve seen what happens when buyers skip due diligence. I’ve helped families recover from title problems that should have been caught before closing. And I’ve learned this absolute truth: an ounce of prevention in title work is worth ten pounds of cure.

If you’re buying property in Eastern Kentucky—especially in older neighborhoods in Pikeville, Prestonsburg, or anywhere else where homes have changed hands over decades—you need a title company that knows the local records, understands the regional complications, and treats your transaction like it matters.

Because it does matter. It’s probably the largest financial transaction of your life.

John Holder, Attorney at Law (Licensed in Kentucky), is Market President & Title Agent at Eastern KY Title. With over 30 years of legal experience and thousands of closings completed as a loan signing agent, John leads operations with a legal-first approach built on experience in real estate law, business development, and risk mitigation. He’s known for simplifying complex transactions and his commitment to digital security and client education. John is also the founder of Kentucky Notaries and author of “Kentucky Notary Law & Practice: A Modern Guide.”

Professional Licensure & Credentials:

• Licensed Attorney – Kentucky Bar Association
• Market President & Title Agent – Eastern KY Title
• Verified in the KBA Attorney Directory

Ready to Buy With Confidence? Let’s Clear the Ghosts Together.

Don’t let hidden liens haunt your real estate transaction. Contact Eastern KY Title today for a comprehensive title search and see why local expertise matters when protecting your biggest investment.

Call us at (606) 226-0024 or email info@easternkytitle.com to discuss your upcoming closing. We serve Pike County, Floyd County, and surrounding Eastern Kentucky communities with smooth, stress-free closings backed by Stewart Title.

Because you deserve to know exactly what you’re buying—and what you’re not.

Best regards,
Eastern KY Title Team