Video: What is a Property Lien?
Wednesday Oct 07th, 2020
What is a Property Lien?
A lien is a claim on a property that results from funds being owed. Liens are common in real estate. A lien gives a creditor first right on your property – so you can’t sell your home without first paying the obligation.
Mortgages and home equity loans typically include what are called “voluntary” property liens. Voluntary liens remain in effect until you pay off the mortgage or loan.
“Involuntary” liens are liens imposed upon you by court order or other means. These liens can include things like income tax liens, court judgments, child support orders or property taxes. If these liens are not paid off they can seriously impact your credit report… and, until they are paid off, they hamper your ability to sell the property.
If there is a lien on your property and you intend to sell your home, try to negotiate with the lien holder and ask for a full or partial release settlement.
If you become involved in a property lien dispute that can’t be rectified, hire an experienced real estate attorney to help you resolve the dispute so that you can complete the sale of your home.