Unless I check my credit report periodically, the average American will often not realize that there is a lien against the house until they apply for credit or tries to sell the house.

A lien will stop the sale of my house until I neglect it. A lien is a type of security for an unpaid debt. It is applicable on a house, a truck, a boat, a business, and any other type of property with enough cash value. Lien undoubtedly doesn’t allow the property to be sold until the debt is clear.

There are a thousand types of liens that find themselves slapped on a home. Among the most usual are mechanic’s liens, tax liens, and judgment liens. Let’s take a closer look at the types and step to remove lien.

MEHCANICS LIEN

Homebuyers who had renovation or other construction work done around the house should check to ensure that their house is lien-free.

“For example, if I renovate my washroom and the supplier who supplied the bathtub isn’t paid by the general contractor. Thus, a lien will be placed against my house to recover the money,” warns the attorneys. Even if I paid the contractor for the bathtub, I’ll be held liable if the contractor failed to pay the supplier for it.

No, it doesn’t seem fair at all, but the law states that I can sue the contractor for the money. When I am knee-deep in a home sale, however, time is of the essence and court cases take time.

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TAX LIEN

If I will not pay my taxes so the government can and will put a lien on my house. This includes federal, state, and local governments.

JUDGEMENT LIEN

If I was ever sued in small claims court, I must be familiar with the judgment lien.

Nolo describes a Judgement lien is created when someone wins a lawsuit against you and records the judgment against your property.

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I MUST REMOVE LIEN BEFORE I SELL MY HOUSE

Unless the purchaser agrees to buy my house subject to the lien, I will need it to clear the payment before the sale transaction takes place. Even if the purchaser did agree to this, however, his or her lender most likely will not.

• The first step I should take when I learn of a lien against my house, and I realize I don’t owe the debt, is to contact an attorney.
• If the debt seems valid,I should contact the lien holder for instructions on how to remove lien from my property.Request that he or she sign a Release-of-Lien, in presence of a notary public. These forms are available from attorney, the county clerk and online.
• Clear off the debt to the lien holder if the debt is valid. Sometimes an attorney can negotiate a lower payoff for me.
• Request that the lien holder sign a Release-of-Lien, in presence of a notary public. Release-of-Lien forms are available from an attorney and from the county clerk’s office.
• File the Release-of-Lien at the county recorder’s office. This makes the release a matter of public record. There is usually a charge for this, and the fee varies by region.
• I will consult my real estate agent about how to notify the title company of the release.
• Keep a copy of the Release-Of-Lien in a safe place, for your records.

I am not an attorney and can’t offer legal advice, so my best course of action, when concerned about how to remove lien, is to contact your attorney.

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