Creditors Will Put A Lien On Your Property

Many creditors will put a lien on your property.  They are trying to ensure they get paid for the debt you owe.  There are judgment liens when you lose the lawsuit.  And there are tax liens when you don’t pay your income taxes.  A lien against your property creates many problems for you.

A lien can be placed on just about anything you own.  Usually liens are placed on your home and/or cars.  They make it hard for you to sell the property.  They also give the creditor the right to take your property and sell it.

A lien on your house gives the creditor the right to foreclose on your house.  Even if the creditor does not foreclose the lien causes other problems.  If you try and sell your house the creditor gets paid.  If you try to refinance your mortgage the creditor gets paid.

Liens are very costly.  Some creditors obtain the lien and wait.  They sit back until you to try to sell or refinance.  The whole time the debt is getting bigger with interest.  That $5000.00 credit card debt is now $7000.00 five years later.

Chapter 7 Bankruptcy will prevent liens from attaching to your property.  However, once attached liens are not discharged in Bankruptcy.  A lien may be able to be removed during the bankruptcy process.  This generally requires additional procedures.  Creditors will put a lien on your property, it’s a cheap way for them to get paid.

What is a Judgment Lien

A Judgment Lien gives a creditor a right in your property after winning its lawsuit.  It helps the creditor collect what you owe.  If you don’t pay you may lose your property.

A judgment lien is created after you have been sued.  If the creditor wins its case it can obtain a certificate of judgment.  The certificate is filed in the common pleas court.  Your creditor now has an lien on your property.

Your creditor may try and sell the property or foreclose on it.  Your creditor may wait for you to try and sell the property.  When you do try and sell the property the creditor with the lien will need to be paid.

Foreclosure

Foreclosure is the legal proceeding against the property.  This happens when you have not been paying your mortgage.  When you signed the mortgage you gave the bank the right to foreclose if you failed to pay them.

What is a Lien

A Lien is a legal right your creditor has in your property.  It ensures you will pay your debt.  A lien can be enforced (you lose the property) if you do not pay the debt.

The bank you pay your car loan to has a lien on your car.  The bank will repossess your car if you do not pay the loan.

A home mortgage is a lien.  It gives the bank the right to take your house through foreclosure.