Types of Liens
Involuntary Liens are those which are imposed against a property without the consent of the owner. This happens in cases of unpaid taxes, special assessments and other scenarios. The owner does not take action to cause the lien. This could happen if you do not pay taxes and then do not reply to notices that taxes are owed. There may then be a lien taken out against your property and notice will be placed or posted on the property. Continue reading
Lien Judgments are court ordered liens placed against a home or property when the homeowner fails to pay a debt. For example, if you took a loan out against your mortgage and then did not pay back this loan as outlined in your contract, there could be a lien judgment put out against your home. This means that it is now being taken to the level of the courts and the bank or lending institution is seeking retribution for what they are owed. If you do not pay for your home, the home can then become the property of the bank in the event of a foreclosure. Continue reading
Tax Liens are those that are imposed by law on a property to secure the payment of taxes owed. It could be for delinquent taxes owed on personal or real property or it could come as a result of not paying income taxes or other taxes. For example, if you owe the IRS and you do not make arrangements or do not follow through with your arrangements to pay this debt, they can then seize your property as payment for taxes owed.
Property records will usually include any types of liens that are or have been on that property. This is valuable information to someone who may be looking to buy the property as well. Since these records are a matter of public record, they have the right to look up this information before they put their money down on the property.
Someone might also find these records when doing a background check on you. This may be done by another bank or lending institution that is considering giving you credit. By law they are allowed to look up this information on you to see if you are considered a safe investment. They are not allowed to use any information they find in these records for any other purposes other than what the law states is ok.
Now that you can understand more about the types of liens, it can help you in your processing of property records. Whether you need to get some records or just want to check up on which of your own records are a matter of the public, you will need to know this info to help you get started. Continue reading
Voluntary Liens are debts that the property owner has agreed to have recorded. Usually this involves a mortgage. It is contrast to the involuntary lien in the sense that the owner of the home is aware of the lien and allows it to take place.
This is just one of the types of liens that can be held on a property. There are different scenarios when someone will voluntarily allow a lien to be placed on their property. For example, if you wanted to take a mortgage out against your house for a loan to make home repairs or to fix your car, this could be a voluntary lien. Continue reading