What is a Lien?
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A lien is a legal claim or a "hold" on some type of property, whether personal or real property, making it collateral against monies or services owed to another person or entity. A lien usually exists in situations like second mortgages, loans against a vehicle title, or money loaned against any other substantial item owned by a borrower. It may keep the borrower from selling the property, or at least keep him or her from transferring title to the property.
Any property that carries a lien can be forced into sale by the lender, in order to collect what is owed, if the loan is in default. If the borrower decides to sell the property, the lien holder must be paid before the title will be cleared for transfer to the buyer.
There are different kinds of liens, and one of the most common is a mechanic's lien, also known as a construction lien. This type of lien is put into place when the property owner owes money for materials or labor which improved the property in some way. This can include repairs, maintenance, and new construction, as well as things like landscaping and renovation.
When purchasing real estate, it is important to make sure there is no lien on the property that will keep you from securing a clear title. This is accomplished by conducting, or hiring an abstract company to conduct, a title search or "abstract of title." This simply means developing and examining a collection of publicly recorded documents regarding the history of the property.
A title search will usually indicate whether or not a lien exists and whether the seller is the legally recognized property owner. It should also indicate the exact legal description of the property, as well as providing details regarding a lien or other encumbrances against the title. This is especially important if you are using creative financing techniques to purchase the property, such as owner financing or a land contract. Otherwise, once you have paid the agreed upon price, you may discover that you still do not own the property free and clear.
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45
So i did a project out in Showlow at a hotel. I did it under a contractor who refuses to pay me he said that the owner of the place wont pay him. The owner of the hotel said he already paid the contractor. What should I do, should I put a lien on the hotel? It's a lot of money -- that is why we are still waiting. - vcadena02
44
We sold our home last year and the buyers didn't have enough for their down payment so we lent them 20,600 dollars. We have a lien on the house and they signed a contract to pay interest only on the loan with the promise to pay more monthly to have the loan paid off in six months. That is not the case. They have missed payments and it is going on two years now. Is there anything we can do? - obtech93
42
My nephew's father is trying to give him some land. After we had a lawyer perform a lien check, we discovered a $5,000 lien. my question is: would he assume the debt if he assumes the land, or does the debt stay in his fathers name? thank you for your help - anon47844
41
#38; The utility company acted illegally by placing your name on the bill. This is directly and effectively equivalent to police sending fines incurred by a hirer to the car hire company.
You have no contract with the utility company. Clearly state that to the company, and get yourself some legal aide. If they threaten to damage your credit rating, hire a lawyer and win big time. - anon46916
40
Can a person in jail who is buying a house get bail money by putting a lien on the house? If he can and then the house is foreclosed on, what happens to the lien? - anon46873
39
A lien has been placed upon me following the default on a payment plan made in New York.
What is the effect upon me? - anon44982
38
My tenants have been evicted couple of months ago by sheriff's office. The utility bill was in the tenants' name. However they never paid. Now I have been receiving their unpaid utility bills in my name. I have tried to reach my tenants to clear their utility bill, but they have simple ignored all my calls.
Now the utility company has sent a letter to place a lien on the house for the tenant’s unpaid bills. What are my options at this time? Can I fight the lien in the court? Since the utility company has not even tried to approach the tenants and simply placed the lien on my property. - anon44917
37
I am the president of a home owners association in North Carolina. We have a lien filed against a property for deliquent dues payment over the past year. The property is now being foreclosed on by the bank. Will this lien have to be cleared by the bank and back dues paid before this title can be transferred to someone else? - anon42864
36
How can my family claim property left vacant by a great-uncle who is now deceased? - anon41997
35
anon38826 I think you should call the finance company and threaten to sue if they do not get this issue resolved for you - anon39390
34
I bought a house in 2008 and got a water softener installed. it's been a year now that I am paying religiously both mortgage and the financial company that financed my water softener. I found out that I can refinance the house for a lower interest rate, after waiting about two months. I finally got an answer that my paperwork had been looked at for refinancing. And found out the finance company put a lien on my property. According to UCC 1 i have to pay $550 for the reduction of my loan. I am not getting any money for refinancing and what I am looking forward was to get a lower monthly mortgage, since I live in Nevada. our property does not have a value, However the financer had been giving me a runaround and excuses for more than a week. Everyday that I called it's a different story that they were telling me. All I wanted is for them to fax the letter of approval for subordination to my mortgage company. And by the way I did pay $550.
Can somebody tell me what to do because I am getting frustrated and just want this problem to be resolved. - anon38826
33
to anon38078:
Well if the contract says that he has to finish both roofs and he signed it, he can't really put a lien on your house. If you go to court, the judge will just explain to the contractor that he agreed to finish both roofs then get paid. - anon38436
32
What can I do if someone is unlawfully trying to place a mechanics' lien on my property? I hired a contractor to pour a concrete slab in my side yard. The contractor hired a cement company. The contractor and cement company had a disagreement about the date that the concrete was to be poured and my contractor hired a different company to pour the concrete. It appears that the change of service was not communicated from the contractor to the cement company and they showed up with concrete the day after the concrete was poured. Because the concrete company couldn't pour the concrete, they are holding me responsible for the cost of the concrete. They have told me that if I don't pay them, they will place a lien on my property. Isn't this a problem between the contractor and the cement company? Why am I responsible for this? - anon38267
30
Can someone please answer my question - i signed a contract with a roofer for replacing roof of my two houses - in the contract it is written that contractor will be paid all the monies due($6779) only after the contractor has successfully completed both the roofs and contractor is not to be paid till all the work is complete. Also, Contrator provides all the needed material and the labor. The contractor finished one house and does not want to work on the second house and wants to get paid. I refused saying that contract says that he must finish both the houses. The contractor threatens me that he will put a lien on my house. Can he put on a lien even though he has not fulfilled the contract and therefore i have not paid him. Also, in the contract it is written that he will use Timberline Prestique30 Shingles for the roofs and will put ridge vents where ever the ridges are on both the houses. the contractor did not use Timberline Prestique30 shingles but used Timberline Natural Shadow Shingles (which are $20 cheaper per square) also he did not use the ridge vents in the house he has completed instead he just used cheap $5 alumimum vents (4 of them that too without flashing them). Do I have any protection against this lien he is threatening to put on my property. How will I know if he already has put a lien will I ever be notified about it. All this happened in Clayton County Georgia. Please some advice. Thanks!!! - anon38078
29
Hi i live in CA. me and my husband financed a water filter back in 2007. we stopped making payments on the loan due to financial hardship in may of 2009. We purchased our first home in October 2008 since we stopped making payments on that loan they said they were going to put a *lien* on our house. is that possible even though we got the filter before we bought our house. - anon37962
28
To Tree,
It is to my knowledge that most states do not allow deficiency judgments for non judicial foreclosures due to a Deed of Trust. If the properties are located in CA, then you should be fine. However to be safe, you might want to deed the property to your child (as long as he is over 18 yrs old). That way the creditors will not even try to get the property. - anon36053
27
My family has been a bid in on property that has a Medicaid lien against it. Does anyone know how long it takes for the State to let you know if they accept the bid or not? I am in Illinois. - kiley79
25
I am losing all my investment properties with first and second mortgages on them. My primary residence is mortgage free. How can I save this one? Should I claim it to my son before any possible lien on it? Should I add his name to the deed? Can I sell it to him? and if I do none of the above, can I one day rent it or sell it? How legally secure is one with his only property as a primary residence? - tree
24
What are the exact steps needed to put a lien on anautomobile?
- stargazer05
23
Any lien on property can be superseded by the UCC-1 Financing statement and lien under the uniform commercial code. - pyramid777
22
Property used to secure bail, can this be a lien on the property? - anon28485
21
Boiler 23 ,you have great standing to individually file an action for the monies paid out on the motorcycle by you. What state are you located within? - pyramid777
20
I live in west virginia. I bought a house from a contractor and we did a title search and everything was clear and the process went on. Now I am getting a notice that there is a mechanics lien on my property. Can they do it now? - hot2talk
19
I live in GA, and I was living in my parents home while they were overseas. I personally signed the contract to have lawn work done to the home while I was living there. I do not own the home and have no rights to the home. Is it possible for the lawn service to put a lien on my parents property even though I am the one who took out the contract?
- anon25840
18
I live in the state of Georgia and I owe for this years Homeowners Associations fee and I haven't paid as of yet, due financial difficulty and I just received in the mail a letter from an attorney stating that this amount owed must be paid before the end of the year or they will put a lien on the house. If this should happen, how does this affect me in the long run as far as my credit? I know that liens shows up on your credit, but will that be a factor for me in the future if I wanted to get credit? - anon22803
16
My mother had her house remodeled in 1987, she and her husband signed a contract to put up property as collateral, the company that did the siding went bankrupt or went out of business and no one notified them now it twenty-one years later and my father is past away and someone writes her and tell her if she does not pay 29,000.00 for a 8,000.00 loan they will foreclose. Can this happen? - iamlaidoff
15
I had a boiler installed in my bar. I have been making payments on the boiler but the company recently got ugly about it and demanded payment in full or they would put a lien on the building. Two questions. In Colorado, if they have passed the 4 month mark, has the statute of limitations in which they can file a lien expired? Additionally, I am only leasing the building. Can they put a lien on someone elses property for money I owe them? - spoons35
14
Might interest any of you who come to France, that the word "LIEN" means "LINK" (as in a chain or on the Internet!) - anon14409
13
I had a contractor place a lien on my property. I am building a house and we had a dispute over billing. I have paid him in full and he has now placed a lien on my property 7 months after the job was completed and also did not give me the proper 20 day notice. Any advise on what I should do would be very helpful! - mparrish
12
My uncle was recently worked on a construction project as a laborer for a subcontractor who was subcontracting the work for the general contractor of the project. He has the feeling that he was not going to get paid for the work he did. He does not know anyone from the general contracting company and he knows that he will get no where talking to his employer. I just want to ask what options does he has in terms of getting his pay? - nikoscorpio
11
Hi, I live in georgia and I purchased 2 investment properties in 2006. I didnt know alot about it and ran into some difficulties paying the mortgage when the tenants did not pay. They are about to foreclose in 2 weeks and I was wondering if they could put a lien on my personal property if I cant pay balance after if sold. Please advise what steps I need to take to protect myself. - mckinneytl
10
i live in georgia and i purchased some bad investment property. they are going to foreclose in two weeks and i wanted to know if they can put a lien on my personal property? - anon9980
9
Im in Texas.. My mother passed away 2 yrs ago and left me a house with land. Im now in the process of selling the property. My mothers brother helped buy the bricks for use on the house back in the late 70's early 80's. I dont know what agreements were made between them but I'm thinking he may try to put a lien on the house. Is this possible? What proof will he need? How would I fight this if needed? - ksmtx
8
In order to put a lien on someones property what do I need as proof? I lent money to a company and the company shut down. This happened over 2 years ago. Do I still have the right to go after one of the owners personally? The money was given to one of the other partners which deposited it in the company account.
The only proof I have is the cheque which was made out 2 years ago. Do I need proof of this individual cashing it personally? or a time frame. I was told that I can only go after the company and the person. And it has been more than 3 months so therefore it is past the time frame. - toni
7
I recently co-signed for a motorcycle for my brother-in-law and he has not made a payment on it since last march. I have recently been contacted by the manufacturer of the bike saying I needed to pay $3,500 or the bike was going to be repossessed. I have been having to have to make the payments on the bike since that phone call with the manufacturer, not to mention pay for the higher interest rate because of him not making a payment. Can I put a lien on him for any of the amount of the bike that I still owe on it? Or any other legal action against him? - boiler23
6
My father passed away 2 years ago. He was on medicaid. Now medicaid has a lien on my mother's property. My husband and I would like to purchase this property and build a small house on it to be closer to mom in case she needs assistance. Do we need to get a loan to pay off the medicaid lien AND the the 2nd mortgage? I assume medicaid gets their money first. Any suggestions would be welcome. - tacunni
5
In 2004 I sold my house through a Real Estate Agent and Title company. A title search was completed by this company. Today I receive a letter from a collection agency stating that I owe a debt to the Department of Housing and Urban Development from back in 2001. Shouldn't this have been taken care of at the sale of the property. I also show that I had Title insurance on this.
- anon6772
4
I'm looking to buy my first home within the next year. I recently got married. My credit is good, and I have a good job. However, my husband's credit is not so good, but he has a good job also. He owes money for federal income taxes. He is self employed, and his taxes are not done correctly. Can I finance a house in just my name without his name being on the deal? I believe putting him on the deal will not be a good idea. I don't want any liens put on the house for taxes he owes. How would this work and what are my options? - tonBjackson
3
I was awarded home in my divorce three years ago. I have not been able to refinance and have ex wife taken off the title and loan because of my poor credit. Now my ex wife claims that an attorney has advise her that she can place a lien on the property. Want to know if this is true and if so what can I do to stop this. - anon5289
2
I performed work on a Parade of Homes winner, my payment terms are Due Upon Receipt. They paid for the rough in but not the final. Long story short, I filed a small claim in NC courthouse & the court date wasn't for 2 months. I'm now approaching the court date & found out by the tax records, this house sold a month ago. I'm told the lien wouldn't be put on the house until the court date. So my question is: What recourse do I have when I filed a small claim against the contractor for non-payment & the house sold before the court date. Is there a possibility of still collecting or how does this work? - fccllc
1
My wife and I have been making the payments on my father's property since he died in Dec. 2006. I have 5 siblings and only one of them has helped to make the payments. My wife would like to put a lien on the property to protect our interests and make certain we will receive all our money back after the sale of the property. How do we go about doing this? The land is in Pima County, AZ. We already have an affidavit of succesor for my siblings and I. - anon1699
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Written by
Sherry Holetzky
Last Modified: 17 November 2009
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