If you own a property, you may be familiar with the term “lien.” A lien is a legal claim or encumbrance that a creditor places on your property to secure the repayment of a debt or obligation. In simpler terms, it means that if you owe someone money or have a legal obligation to pay, they have a right to take action against your property until you pay the debt or obligation.
Types of Liens
The most common type of lien is a mortgage lien, which is filed by the lender when you obtain a mortgage loan to buy your home. The lien secures the lender’s interest in the property until the loan is paid off.
Other types of liens that can be placed on your property include:
- Tax liens: If you fail to pay your property taxes, the government can place a lien on your property to ensure payment.
- Mechanic’s liens: Contractors, subcontractors, and suppliers who work on your property can file a mechanic’s lien if they are not paid for their work.
- Judgment liens: If someone wins a lawsuit against you and you fail to pay the judgment, they can place a lien on your property.
Why You Want to Remove the Lien
Even if you have no intention of selling your property, it’s essential to clear any liens against it. The reason for this is that liens can prevent you from selling or refinancing your property until they are cleared.
When you sell your property, the buyer will want a clear title, which means that there are no outstanding liens or encumbrances on the property. If there is a lien on your property, the buyer will be hesitant to purchase it because they don’t want to inherit your debts.
Similarly, if you want to refinance your mortgage or take out a home equity loan, the lender will want to make sure that the property is free of any liens.
How to Remove the Lien
The process for removing a lien depends on the type of lien and the creditor who filed it. In most cases, you will need to pay off the debt or obligation that the lien secures before the creditor will release the lien.
Once the debt is paid, you will need to obtain a lien release or satisfaction from the creditor and file it with the county recorder’s office. The lien release will remove the lien from your property, and you will have a clear title.
If you’re unsure about the liens on your property, you can perform a title search or contact the county recorder’s office. If you need help clearing a lien or selling your property, you can also contact a real estate attorney or a reputable home buying company like The Walker Group.
In conclusion, liens can cause significant problems if they are not addressed promptly. It’s essential to know the types of liens that can be placed on your property and how to remove them if necessary. Clearing the liens will ensure that you can sell or refinance your property when you need to without any delays or issues.
