Here at Wharton Law we often stress the importance of getting a title search and ensuring that a home you’re interested in buying can be provided with title insurance. The reason for this is simple. This article we will discuss what you need to know about property liens. We aim to help you protect your investments as well as possible, and one of the biggest investments you’ll ever make is in your home. Today, we’d like to explain just what a property lien is, how a home gets one, and how a homeowner may choose to get rid of it.
What is a Lien?
- A lien that is put on your home due to failure to pay someone who’s done work on your home, such as a contractor or repair person, is called a mechanics lien.
- When you’ve gone to court, and lost the case, if you are not able to pay the judgement right away, the person you owe could put out a judgement lien on your home in order to ensure they get their money ordered by the court.
- If you do not file or pay your federal or state income taxes, the government is allowed to put a tax lien on your home to guarantee payment.
How to Remove a Lien
- You will first want to negotiate with the lien holder who will likely want to work out a payment plan with you to get the money they originally took out the lien for.
- Likewise, the IRS might agree to remove your lien if you agree to a payment plan to take care of your back taxes.
- Lastly, if you don’t believe the lien is justified, you can go about the process of proving that, by filing a lawsuit of your own in attempts to get the lien removed.