A lien or property lien is something that a creditor can attach to a property title. When your real estate property has a lien attached to it, it means that you owe the creditors money.
A lien can also be a right given by a property owner to another person, like a creditor or lender, to secure payment of a debt or other financial obligation. This is considered a voluntary lien. One good example of this is a mortgage. In the event that the loan is not paid off within the given amount of time, the lien holder has the right to foreclose the property.
Involuntary lien is imposed by law. This happens when you, a property owner who owes a creditor money, fall behind on tax payments.
How does a lien work?
Before a creditor or lender can place a lien on a real estate property or other personal property without evidence, one must go to court first and present evidence that the borrower was not able to pay his debt. After a judgment has been granted, the creditor will then need to register with the land records office where the property is located.
If the owner decides to sell the property with a lien, the lien will be paid off using the proceeds of the sale. But this is only after the borrower pays the mortgage lender first.
Should a lien claim be made illegally by your creditor, you must gather all documents that will prove your claim. These include phone calls, emails, letters, etc. Then, respond in writing and attend court hearings.