What Does it Mean When My Property Has a Lien Against it?
Legal Claims: What's a Property Lien?
Although rare, the previous owner may have not paid a contractor for work performed on the property, causing the contractor to put what is called a lien against the property. In other cases, money may be owed to a creditor by missing mortgage payments or not paying them in full each month. Whatever the situation, the creditor will often put a “lien” against the property, making it almost impossible to sell until the debt is paid in full.
How do I find out if I am entitled to a property lien?
A “lien” is simply defined as “the public claim that a creditor is owed money, causing the title of a home, car, boat, or other equipment to become unclear” (source, NOLO). To sell or refinance credit, your property or equipment must have a clear title; this helps lenders know they will get paid.
Table of Contents
- What is Title Insurance & Why Do I Need it?
- What Does it Mean if My Property Has a Lien Against it?
- The 2 Types of Title Insurance: Lender vs. Owner
- What Exactly Does Title Insurance Cover?
- How Much Does Title Insurance Cost?
- How is Title Insurance Different From Other Types of Insurance?
- Title Insurance FAQ's
- What to Expect at Closing
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Patrick J. O'Rourke - Attorney at Law
The Best Real Estate Attorney in Bloomington-Normal, Champaign-Urbana, Peoria, Springfield, and Central Illinois