Can A Family Member Put A Lien On My House?

Let’s examine Can a Family Member Put a lien On My Property, the different types of liens that could appear on your property and how you can avoid them to avoid this situation.

What Is a Property Lien?

Generally, a lien is a public record that indicates a creditor claims you owe them money. It indicates that you owe your creditors some money. Generally, it is filed with a county records office (for real estate) or a state agency, such as the secretary of state (for boats, mobile homes, office equipment, etc.).

You must have a clear title to sell or refinance a property if someone puts a lien on it. Liens are common ways for creditors to collect what they owe. Liens on houses, mobile homes, cars, and other properties make their titles need clarification.

You must pay off the lien to clear up your title. In other words, creditors know putting a lien on the property is a cheap, almost guaranteed way of receiving payment sooner or later.

Liens Placed On a Home by Common Entities

Liens Placed On a Home by Common Entities.

Real estate taxes

If you owe real estate taxes, the government may place a lien on your property, and be aware that property tax liens take precedence over all other mortgages. To protect your mortgage, your lender may pay your property taxes. Or your lender may pay the taxes to protect its mortgage. If they don’t, the government can sell your home to pay your property taxes.

Creditors

Unsecured debt holders, such as credit card companies, medical providers, and personal loan companies, can sue and get a judgment against you. You can file a judgment lien on your home with the judgment in hand.

Attorney fees

It is only possible for your lawyer to place a charging lien on your property for unpaid legal fees if this appears in your contract with the lawyer (which it usually is).

Contractors

The contractor can file a mechanic’s lien if you fail to pay them. Contractors are usually required to file liens within six months of non-payment. The contractor then has to sue to enforce the lien within one year, but this can vary by state. The contractor may be able to force the sale of your home if they win the lawsuit.

The IRS

The IRS can attach a lien to your home if you don’t pay your back taxes.

Child support/alimony

If you owe substantial alimony or child support, your former partner or spouse can put a lien on your property. The lien will remain until you pay the debt, refinance your property, or the former partner or spouse forces a lien sale.

Liens on Jointly-Owned Property

The terms of ownership determine whether there can be a lien on the joint-owned property. For example, an individual creditor cannot encumber a property owned by a married couple through an ownership quality called “tenants by the entirety.”

A lien can only attach to the interest of a married couple or joint owner if they hold a tenancy by the entireties title. In any case, the lienor will become a co-owner of the property, regardless of whether it is a judgment or confessed judgment.

A lienor can be a general contractor who owes money or a creditor. Such as a mortgage company. A lienor can attach and enforce its lien on a joint owner’s title, but the lienor will usually negotiate with the owners instead of forcing the sale of the property.

Methods for Removing Liens.

Three methods are available for removing liens.

• By filing a formal complaint with the land titles office, you can have a lien on your house removed if it has a flaw.
• We can also remove a lien from your house by paying the amount of the holdback into court, which may be significantly less than the lien. Alternatively, you may settle your debt for the lien or pay the holdback amount in court.
• The Land Title Act also provides for the cancellation and removal of liens by filing and submitting Form 17 for builders’ liens.

Bottom line

Whenever a creditor or contractor places a lien on your property, it can be difficult to remove it. If a real estate lawyer assists, a lien can be removed with a lot of ease.