Featured News 2013 Understanding Property Lien

Understanding Property Lien

Having a lien placed on your property is not a good position to be placed in, as it is a way for creditors to whom you owe money to claim back what is due them. A property lien is something that a creditor has placed on your home in order to essentially tell the world that you owe them money, and that they are securing your debt by placing the lien on your home. Depending on the situation, the property lien will be done either through the county records office for real property (such as your primary place of residence) or it will be filed at a state agency for other property (such as boats, cars, office equipment, etc.) By a creditor placing a lien on your property, it is their way to make sure that they receive back the money that you owe them; real estate liens being among the most common ways for them to collect. Though it is possible they will place a lien on a type of personal property, if there is real estate that is where the creditors will likely start.

The lien that a creditor will place on your property will total the amount that you owe them, which may or may not be the value of the property itself. In the event that you are unable to meet the payment requirements, because of the lien your property then becomes collateral for your debt and it may be taken if the debt is not repaid. Often times the terms of these liens are listed out in your mortgage agreements, which basically state that in the event you do not adhere to certain agreements, then the bank reserves the right to take the property ownership from you and eventually foreclose the home.

Property lien can have varying effects on you as a homeowner, which is why having the legal assistance of a real estate attorney is so crucial. Once the lien has been placed onto your home, you lose the rights to place your property up for sale or even the ability to refinance in order to make some of the payments you owe. The reason for that being in order to refinance or sell you must have the title to the home, and a lien strips you of that title, therefore prohibiting you from taking action on your own with your property. While all of this may appear to be overwhelming, just because a creditor placed a lien on your home today it doesn't mean that you will lose your property tomorrow. Under this, you are fully capable of retaining the title of your home if you are able to pay off the amount of the lien. In the event you are unable to do so on your own, consulting a skilled real estate attorney is in your best interest as they will be able to walk you through the next steps that are required in order to pull yourself out of this lien.

There are a number of benefits to hiring a real estate lawyer, and one of them is for when you are dealing with a property lien that has been placed on your home. It can be both challenging and overwhelming to have to address the many legal matters associated with the lien, as well as determining what is the best course of action for your unique situation. An experienced attorney will be able to access your situation as it is, and walk with you in order to determine what path is best for you as the homeowner dealing with debt. Please use our website to find one of those trusted real estate lawyers in your area today to answer any of your real estate questions!

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