Who Can Put a Lien on a Property

What Kind Of Liens Can We Find On The House?

A voluntary lien

The owner or debtor of the property voluntarily grants a legal claim to the lender or creditor on the property until the lender or creditor has paid off the mortgage.

An involuntary lien

However, involuntary liens on your property may file by creditors when you fail to pay your debts. This is an involuntary lien.

Judgment lien

It is also possible for a creditor to sue you, win a judgment against you, and file that judgment in your county record office. Once we file this judgment, it creates a lien on your property.

You May Receive A Lien On Your Home From The Following Entities:

A property tax lien

A property tax lien takes precedence over any other mortgages or liens on your property if you owe real estate taxes. If taxes are not paid, the government can sell your home to pay them. To protect its mortgage, your lender may pay and add them to your mortgage debt.

Credit card companies

Credit card companies, medical agencies, and loan companies can sue you for unsecured debt. If they win, they can place a lien on your home so that you can pay the debt.

Lawyers’ fees

Lawyers can file liens for unpaid fees only if they are stipulated in their contracts (which they usually are).

Contractors and mechanic’s lien

A contractor can file a mechanic’s lien if you fail to pay them. Most states require that a contractor file a lien within six months of nonpayment. In most states, the contractor must sue within one year to enforce the lien. Upon winning a lawsuit, a contractor may be able to sell your property forcibly.

The IRS

Including your home, the IRS can place a lien on everything you own if you don’t pay your back taxes.

Child support/alimony

When you owe your ex substantial child support or alimony, your ex can put a lien on your property. The lien will stay on your property until you pay the debt, refinance, or need to sell it.

What Are The Effects Of Liens On Homeowners?

Homeowners can suffer from several negative effects due to an unpaid lien, none of which are good. You might lose your home if forced to sell your property because of an unpaid lien.

What Are The Effects Of Liens On Homeowners?

Additionally, judgment liens and mechanic’s liens are reported to credit bureaus and factor into your repayment history, so your credit rating can suffer as well.

How Do Liens Affect Sellers?

Liens may prevent you from selling your home. A buyer is advised to take caution when buying a home with a ‘clouded’ title, and no bank will lend money on a property with liens.

Need to remove the lien?

If you wish to remove the lien, you can pay it off by negotiating a reduced settlement with the lien holder. Pay less than the original amount owed to get the lien removed. Whatever you decide, make sure the creditor formally releases the lien from your property and takes a copy for your records.

We can also remove Liens through bankruptcy, waiting for the statute of limitations to expire, and, in some cases, obtaining a court order. You should consult a real estate lawyer if you plan to fight a lien on your property, which Attorneys Group can help.