A lien is a notice attached to your property notifying the world a creditor thinks you owe it money. You may not be aware of it until you try to sell your property. A lien is a common way creditors try to collect what they’re owed. If a contractor or taxing authority puts a lien on your property, it becomes collateral for the debt. You need a clear title to sell or refinance your property.
Anthony Burton represents property owners in quiet title actions. Whether you’re selling property as part of your business or you plan on moving to another home, we can help. Call us at (949) 244-4207 or fill out our online contact form today.
What’s a Property Lien?
A property lien is a creditor’s way of forcing repayment by requiring the homeowner to deal with the issue. Lienholders can foreclose their liens to collect what’s owed, but that rarely happens. They may wait until the property owner needs a clean title to sell it to negotiate payment.
Homeowners often go into debt. They may want to refinance a mortgage, renovate or repair their home, or finance their child’s college education. If there’s an unpaid court judgment against you, your creditor can file a lien on your property. In addition to that amount, there would be fees for the court, the county recorder, and the sheriff.
Unpaid contractors, subcontractors, laborers, and material suppliers can file a “mechanics lien” on your property. This can happen if your prime or general contractor didn’t fully pay for materials or those working on your home. Under California law, you’re responsible for payment even if you fully paid a prime contractor who failed to pay others. Often these lien claims are defective because the party seeking payment didn’t meet deadlines for filing their claim.
How Can a Lien be Removed?
If the lien’s legitimate, the simplest way to remove it is to contact the lien holder and negotiate a payoff. You may be in a good position to ask for a discount, especially if you’re not yet planning to sell the property. They may be willing to take less money now than wait for possibly more money later.
If you don’t think a lien’s legitimate, a court can order it be removed. Quiet title actions are lawsuits that require lien holders to defend their claims. It’s filed to determine the property’s actual owner and who has interests in it. The legal action usually occurs when parties with possible interests in a property disagree over their rights, like a party claiming to have a right to a share of the property’s value.
The plaintiff normally wins because of the strength of their case, not due to the defendant’s weaknesses. Quiet title actions have very specific requirements concerning service, publication of notice, claims, and procedure, so you’re better off with an attorney familiar with how they work.
As a last resort, a bankruptcy court may remove the lien. If you file for bankruptcy protection, your assets are examined by the trustee responsible for your estate. Since a lien could impair your property’s value and your ability to emerge from bankruptcy, it’s fair game for possible avoidance.
Rely on Anthony Burton if Your Property Rights are at Stake
We handle a variety of real estate matters for our clients, including quiet title actions. Anthony Burton can be a zealous advocate for you and your interests. Put these property liens behind you though the best way possible with our help. Call us at (949) 244-4207 or send an email to info@awblawpc.com to schedule an appointment.
