• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Wealth Pilgrim

No Money Worries. No Matter What.

Neal Frankle featured in
  • Home
  • Life Insurance
  • Investing
    • Build Strong Investment Building Blocks To Avoid Going Broke In Retirement
    • Systematic Mutual Fund and ETF Investing
    • Stock Market Investing Guide
    • Choosing the Right Investment Brokerage Guide
    • How Bonds Work Guide
    • How Banks Really Work Guide
    • Annuities – What You Need To Know Before You Invest
    • A Beginners Guide To Buying Individual Stocks
    • Create A Pool Of Great Mutual Funds and ETFs To Pick From To Secure Your Retirement
    • ETF and Index Fund Investment Guide
  • Earn More
  • Banking
  • Retirement Planning
    • Retirement Guide
  • Ask Neal a Question
  • Reviews
    • Upgrade Personal Loans Review
    • Lending Club Review
    • Prosper Review
    • Ally Invest TradeKing Review
    • CIT Bank Review
    • LegalZoom Review
    • Lexington Law Review
    • Airbnb Host Review
    • Should You Drive For Uber?
  • Tax
  • Courses
    • Raise Your Credit Score So You Can Buy a House – Free Video Course

Is there a lien against property I own? How to Find Out and What to Do About It.

by Neal Frankle, CFP ®, The article represents the author's opinion. This post may contain affiliate links. Please read our disclosure for more info.

Even if you have paid off your mortgage there may be a lien against property you own that you don’t even know about.

In light of the fact there are so many opportunities to get tangled up in real estate problems of this sort, I thought it might make sense to go through this issue in detail.

What is a lien?

A lien is a claim against your property that backs up a debt you have. If the debt isn’t paid, the debt holder has the right to enforce the lien in court and seize your property.

Who Can Put A Mortgage On Your Property?

Many different people can do this. If you have a mortgage against your property the bank that holds the mortgage puts a lien against your home to guarantee payment. But there are several other parties who can file a lien against your property. The Federal government can file a tax lien and so can local governments if you don’t pay your tax bills. Unfortunately, it doesn’t stop there.

If you don’t pay people who do work on your home (like contractors and subcontractors) they can also file liens. Other creditors can also file liens depending on the state you live in. Some states put liens on your home if you don’t pay child support or alimony.

How Do You Find out If There is a Lien against Your Home

This is really simple. One option is to go to the courthouse and look it up. A simpler option is to ask a title company to prepare a report for you. It will cost you a little money but it will save you a great deal of time.

If you have a mortgage on your home, you can save time and money by simply calling the bank that is carrying your loan. They will tell you if there are any other liens on your home besides their own.

What Is The Effect Of Having A Lien On Your Property?

A lien on your home is serious business. When there is a lien against your property it may be tough to sell or refinance your home depending on the State in which you live in. Depending on the type of lien and the State you live in, the courts may force the sale of your home in order to satisfy the debt.

That’s why it’s so important to check to see if there are any such encumbrances against your home.

Bogus Liens

Most liens are legitimate but sometimes people slap liens on your property when they shouldn’t. The most “popular” lien scam is run by contractors who are less than reputable. What they do is perform the work on your home and take your money. But they fail to pay the people who work for them and these subcontractors can put a lien on your property.

Most States allow you to easily side-step this problem. You do that by demanding a “Lien Waiver” from everyone – contractor and subcontractor alike. This document is a declaration that they have received full payment and that they don’t have a claim on your home. But if you are doing work on your home there are other steps you should take to make sure nobody puts a lien on your home. I will be writing more on that topic shortly.

Property liens are serious business. Don’t ignore them. If you have a bonafide debt held against you, pay it. If the lien is phony, get rid of it. Just don’t ignore the issue. It could be a very costly oversight.

Have you ever had a lien placed on your property by a Government body or contractor? What did you do about it?

Tweet
Pin
Share1

Reader Interactions

User Generated Content (UGC) Disclosure: Please note that the opinions of the commenters are not necessarily the opinions of this site.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Are You Human? * Time limit is exhausted. Please reload CAPTCHA.

Primary Sidebar

Who is Neal Frankle

Neal Frankle

I'm a CERTIFIED FINANCIAL PLANNER™ Professional with more than 25 years of experience. I feel very blessed and hope to share my personal financial experience and professional wisdom with readers of WealthPilgrim.
Read More »

Stay Connected

Facebook Twitter YouTube RSS

More Categories

Career Development
College Funding
Credit Cards
Credit Score Fixes
Money and Marriage
Debt Relief
Estate Protection
Property Investment Loans
Small Business Strategies
Spend Less Money

Disclaimer

Wealth Pilgrim is not responsible for and does not endorse any advertising, products or resource available from advertisements on this website. Wealth Pilgrim receives compensation from Google for advertising space on this website, but does not control the advertising selection or content. Please do the appropriate research before participating in any third party offers. The information contained in WealthPilgrim.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation. Wealth Pilgrim does not provide investment advisory services and is not a registered investment adviser. Neal may provide advisory services through Wealth Resources Group, a registered investment adviser. Wealth Pilgrim and Wealth Resources Group are affiliated companies. In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving payments,access to free products and services for product and service reviews and giveaways. Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.


About · Contact · Disclaimer & Privacy policy

Copyright © Wealth Pilgrim 2022 All Rights Reserved