Finding out that you have had a lien placed on your property is devastating news, especially if you have plans to sell your home soon. After finding out exactly who filed the lien, the next logical question is often – how does this affect me? Here is some valuable information to help you grasp what you're up against and how to move forward.
What Are Liens?
Start by gaining a better understanding of what a lien is. First, there are two types of liens, a voluntary and involuntary. A voluntary lien is something you knowingly enter into, such as with a mortgage company. However, if you're just learning about it, it's likely your situation is an involuntary lien.
This type of lien is a form of judgment that has been imposed against you from a creditor. In this situation, the creditor can add the amount you owe them to your property title. The types of creditors that can use this method for aggressive repayment vary, but the IRS and construction companies are common originators of involuntary liens.
What Does This All Mean?
A lien is a serious thing. It basically means that even when you pay your home off, it's not really paid off. Sure, the mortgage is satisfied, but because the amount you owe the creditors has been added onto the title, the title will not be free and clear.
If you wanted to borrow against the home or even sell, you would be unable to do so. A lien will typically stay on the property until it has been paid. If you had a lien imposed on your property due to unpaid taxes, they may even file a writ of execution, which could put your home into foreclosure if you don't pay.
Protecting Your Home
If you've had a lien imposed on your home, protecting your property is likely your primary concern, as it should be. One way to work towards this goal is to partner with an attorney. Typically, an attorney will start their efforts by researching the lien, as there are instances where a lien is found to be invalid based on the contract terms or even inaccurate, such as being placed on the wrong individual.
However, if the lien is valid, an attorney can help you review your finances and other information to see if you can come up with another agreement with the creditor.
A lien does not have to be the end of the world, but it is definitely something you don't want to ignore. Let an attorney, such as from Hornthal Riley Ellis & Maland LLP, help you protect your home.
Share20 July 2017
