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A home lien is a legal claim against a property, usually in response to a debt, such as a mortgage. It allows the mortgage holder to foreclose on the property if payments aren’t made. Liens can also result from lawsuits against the homeowner. Before buying a property, it’s important to do a title search to ensure there are no outstanding debts. If there is a lien from a previous owner, it can be remedied by waiting for it to expire or seeking legal advice to negotiate its removal.
A home lien is a legal claim held by someone other than the homeowner against a property, usually in response to a debt. This usually comes in the form of a mortgage and means the home is partially owned by the bank or mortgage holder until the home is paid off. Other liens can also be brought against the home, such as where a landlord is sued and judgments are passed on the home.
Although most people assume that a home loan is a bad thing, home loans are a form of lien that is often necessary and not necessarily a bad thing. This just means that if homeowners don’t make a payment on their outstanding balance, the mortgage holder can foreclose on the property and take possession of it to resell in order to raise the money. While this is a bad thing for those who can’t make the payments, mortgages allow those who don’t have the money to pay in full to own a home.
Sometimes a lien on the home can come as a result of a lawsuit against the homeowner. When a judgment is placed on someone who has ownership of a property, it is also against the house itself. This means that before the homeowner can sell that home, he or she must pay off the debt owed, or some of the money from the home sale will be taken as payment. This type of home lien is usually only a problem for the person who has the debt, but sometimes a home or land can be purchased with liens from a previous owner.
Before buying a new home or lot, it’s important to do a title search to make sure there is no ownership interest on the property. Although in most cases the former owner would have had to settle any outstanding debts to the property, this is sometimes cancelled. For example, if the former owner lost the home to back taxes, the county or city takes the money from the sale, and any additional debt may go unpaid.
If one has a lien on his or her property that has come about due to a previous owner, there are various ways to remedy the situation. He or she can wait until all privileges have expired, assuming they are not renewed. This usually occurs after ten years, but the exact amount of time can vary by location. The owner may also seek the advice of an attorney who may be able to negotiate a way to remove the liens. Sometimes the current homeowner may end up having to pay off part of the entire lien amount before they can sell.
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