{"id":4277,"date":"2024-11-13T12:11:24","date_gmt":"2024-11-13T17:11:24","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=4277"},"modified":"2025-02-10T11:48:51","modified_gmt":"2025-02-10T16:48:51","slug":"real-estate-liens-explained-what-they-are-and-how-they-affect-you","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/real-estate-liens-explained-what-they-are-and-how-they-affect-you\/","title":{"rendered":"Real estate liens explained: what they are and how they affect you"},"content":{"rendered":"\n<p>If you\u2019re buying a home, you might be wondering if there will always be a lien on your property. Short answer: not necessarily, but liens are common, especially when a <a href=\"https:\/\/tomo.com\/blog\/who-does-what-in-a-mortgage-company-understanding-your-lending-team\/\" title=\"lender \">lender <\/a>or contractor is involved. A lien is basically a legal hold that someone\u2014like a lender, the government, or a contractor\u2014places on your property to make sure they get paid if you owe them money.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Think of it as a safety net for creditors. They\u2019re saying, \u201cIf you don\u2019t pay up, I have a legal right to claim this property.\u201d While the idea might sound intense, a lien is a standard part of property ownership, especially with a <a href=\"https:\/\/tomo.com\/mortgage?utm_source=tomo_blog\" title=\"mortgage. \">mortgage.<\/a> Once a lien is paid off (like when you finish paying your mortgage), it\u2019s removed, leaving you with a clear <a href=\"https:\/\/tomo.com\/blog\/whats-a-mortgage-title-and-whats-it-to-you\/\" title=\"title.\">title.<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will my property always have a lien?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>No, not always. Here\u2019s how it usually works:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>If you have a mortgage<\/strong>: Your lender puts a lien on your home as collateral. It stays there until the mortgage is fully paid off.<\/li>\n\n\n\n<li><strong>If you don\u2019t have any debts tied to the property<\/strong>: After your mortgage or any other <a href=\"https:\/\/tomo.com\/blog\/does-debt-consolidation-affect-buying-a-home\/\" title=\"debts\">debts<\/a> are paid off, the lien is removed, leaving you with a \u201cclear title.\u201d This means you own the property free and clear, and no one else has a legal claim on it.<\/li>\n\n\n\n<li><strong>If there are unpaid obligations (like taxes or HOA fees)<\/strong>: Unpaid debts tied to the property, such as overdue taxes or<a href=\"https:\/\/tomo.com\/blog\/is-it-good-to-buy-in-a-hoa\/\" title=\" HOA fees\"> HOA fees<\/a>, can result in liens. These liens need to be settled before you can sell or <a href=\"https:\/\/tomo.com\/blog\/want-a-lower-rate-heres-when-you-can-refinance-your-home\/\" title=\"refinance.\">refinance.<\/a><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>Having a lien isn\u2019t necessarily a bad thing; it\u2019s more about understanding who has a claim on the property at any given time. Let\u2019s break down the main types of liens you might come across and what they mean for you as a homeowner.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Frequent liens you could encounter<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Mortgage Lien<\/strong>: This is the standard one\u2014your lender puts a lien on your home as collateral for the mortgage. If you default, they can foreclose and take the house.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Tax Lien<\/strong>: If you skip out on property or income <a href=\"https:\/\/tomo.com\/blog\/what-are-the-tax-benefits-of-owning-a-home\/\" title=\"taxes,\">taxes,<\/a> the government steps in with a tax lien. They can force you to sell the property if it\u2019s not resolved.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Mechanic\u2019s Lien<\/strong>: Had work done on your house? If you didn\u2019t pay the contractor, they can slap a lien on your property to ensure they get paid before you can sell.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Judgment Lien<\/strong>: Lose a lawsuit and owe money? The court can issue a judgment lien, meaning the winner of the case can go after your property if you don\u2019t pay up.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/rates?utm_source=tomo_blog\">See today&#8217;s rates<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is it normal to have a lien on your house from your lender?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Totally normal, and nothing to worry about. When you get a mortgage, the lender puts a lien on your house as collateral. It\u2019s their insurance policy\u2014they want first dibs on the property if you stop making payments. Once you pay off the mortgage, the lien is removed, and then, finally, the house is yours outright.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How to figure out if a lien is legit<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Sometimes, a lien shows up that shouldn\u2019t be there (or it\u2019s way too high). Here\u2019s what to do if you think there\u2019s an issue:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Review the lien:<\/strong> Start by double-checking that it\u2019s legit. Look at the amount and see if it was filed correctly.<\/li>\n\n\n\n<li><strong>Dispute it:<\/strong> If it\u2019s inaccurate, try negotiating with the lienholder. You can send a demand for a lien release if you think it\u2019s bogus.<\/li>\n\n\n\n<li><strong>Take it to court if needed:<\/strong> If the lienholder won\u2019t budge, you might have to file a \u201cquiet title\u201d lawsuit. This gets the courts involved to decide if the lien should stick.<\/li>\n<\/ol>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Heads-up: lien rules change by state<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Lien laws vary by state, especially for mechanic\u2019s liens. For example:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>State<\/th><th>Filing deadline<\/th><th>Notice requirement<\/th><th>dispute resolution<\/th><\/tr><\/thead><tbody><tr><td><a href=\"https:\/\/tomo.com\/mortgage\/rates\/sacramento-ca?utm_source=tomo_blog\" title=\"California\">California<\/a><\/td><td>90 days after work completion<\/td><td>20-day preliminary notice<\/td><td>file a &#8220;release bond&#8221; to temporarily remove lien<\/td><\/tr><tr><td><a href=\"https:\/\/tomo.com\/mortgage\/rates\/austin-tx?utm_source=tomo_blog\" title=\"Texas\">Texas<\/a><\/td><td>15th day of the 3rd month<\/td><td>notice of intent to file lien required<\/td><td>file a lawsuit to contest or release bond<\/td><\/tr><tr><td><a href=\"https:\/\/tomo.com\/mortgage\/rates\/tallahassee-fl?utm_source=tomo_blog\" title=\"Florida\">Florida<\/a><\/td><td>90 days after work completion<\/td><td>notice to owner within 45 days of start<\/td><td>file a notice of contest, lienholder must act in 60 days<\/td><\/tr><tr><td><a href=\"https:\/\/tomo.com\/mortgage\/rates\/denver-co?utm_source=tomo_blog\" title=\"Colorado\">Colorado<\/a><\/td><td>4 months after work completion<\/td><td>10-day notice of intent required<\/td><td>file a petition to remove the lien<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a lien search, and should I get one before buying a home? <\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>A lien search is part of a title search to ensure no unresolved liens are on the property. Any existing liens could become your responsibility after purchase.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can I buy a house with a lien on it? <\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Yes, but the lien will need to be resolved before or during closing. The seller typically pays off the lien from sale proceeds, but it\u2019s crucial to <a href=\"https:\/\/tomo.com\/blog\/do-i-need-a-realtor-to-buy-a-house-pros-and-cons-of-diy-home-buying\/\" title=\"negotiate this during the sale.\">negotiate this during the sale.<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do liens expire or go away after a certain time? <\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Liens have expiration dates, varying by state and lien type. A mechanic\u2019s lien might expire if no legal action is taken, while tax liens can last longer.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Voluntary vs. involuntary lien\u2014what\u2019s the difference?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>A voluntary lien, like a mortgage, is agreed upon by the homeowner. An involuntary lien, like a tax or mechanic\u2019s lien, is placed without consent due to unpaid debts.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/affordability?utm_source=tomo_blog\">How much home can I afford?<\/a><\/div>\n<\/div>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);margin-left:0;margin-right:0;\" class=\"has-link-color wp-elements-c54b177fd5d2f341f8967a20726f2ac0 wp-block-post-author has-text-color has-contrast-color has-background has-tertiary-background-color has-large-font-size\"><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\"><a href=\"https:\/\/tomo.com\/blog\/author\/clairegtomonetworks-com\/\" target=\"_self\">Claire Gallaudet<\/a><\/p><p class=\"wp-block-post-author__bio\">Claire is a Mortgage Analyst at Tomo, where she explores the data and trends shaping the housing market. She is especially interested in how economic forces impact homebuyers. A Seattle native, she now lives in Austin, where she balances analysis and communications with teaching yoga and walks around the lake with her dog.<\/p><\/div><\/div>\n\n\n<p>If you&#8217;re ready to start your journey to homeownership, <a href=\"https:\/\/tomo.com\/mortgage\/app\/preapproval?utm_source=tomo_blog\" title=\"\">get pre approved with Tomo Mortgage today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re buying a home, you might be wondering if there will always be a lien on your property. Short answer: not necessarily, but liens are common, especially when a lender or contractor is involved. A lien is basically a legal hold that someone\u2014like a lender, the government, or a contractor\u2014places on your property to [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":4278,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38],"tags":[],"class_list":["post-4277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgage-dictionary"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/11\/lien-jpg.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=4277"}],"version-history":[{"count":2,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4277\/revisions"}],"predecessor-version":[{"id":4281,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4277\/revisions\/4281"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/4278"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=4277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=4277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=4277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}