If you are facing a lien on your property, you may be wondering how to fight it and protect your home or other valuable real estates. If you have an involuntary lien on your property, the best course of action is to consult with a lawyer who specializes in real estate law. This type of lawyer will be able to help you understand your legal options and guide you through the process of fighting an involuntary lien.
But if you have a voluntary lien on your property, such as a mortgage or home equity loan, the best course of action is to work directly with your lender. There are certain steps you can take to try and get the lien removed from your property.
Liens On House
A lien is a legal claim against your property that allows the lien holder to collect money that is owed to them. Liens can be placed on your property for a variety of reasons, including unpaid taxes, child support, or even outstanding medical bills.If you do not pay the money that is owed, the lien holder may be able to foreclose on your property and sell it in order to recoup the money that is owed to them.
However, by staying current on bills and taxes and regularly monitoring your credit report, you can avoid having liens placed on your property altogether.
Types Of Liens In Colorado
Judgment Liens
A judgment lien may be placed on your property if you are found liable for a debt in court and do not pay the judgment. The creditor must file the judgment with the court and send you notice of the lien. Once the lien is filed, the creditor may take steps to collect on the debt, including wage garnishment or levying your bank accounts.
Tax Liens
The IRS or Colorado Department of Revenue may place a tax lien on your property if you owe taxes and do not pay. The IRS will send you a “Notice and Demand for Payment” which gives you 10 days to pay your taxes before a lien is placed on your property. If you do not pay, the IRS may seize your property.
Homeowner’s Association Liens
If you live in a community that is governed by a homeowner’s association (HOA), failure to pay HOA dues may result in an HOA lien being placed against your home. The HOA can also place a lien for special assessments that all homeowners in the community must pay for things like street repairs or sidewalk replacement. To collect on the debt, the HOA can foreclose on your home.
If you hire a contractor to work on your property and they are not paid, they may file what is known as a Mechanics Lien against your home. This type of lien applies to contractors, subcontractors, laborers, and suppliers who were hired in connection with improving your property. The contractor must send you notice of the intent to file a lien and then file the lien with the county clerk and recorder within 90 days of finishing the work. To remove the lien, you must either pay the contractor or have them release the claim.
How To Fight A Lien?
When it comes to fighting a lien on your property, there are several steps that you can take to ensure that you are able to successfully dispute the claim and have it removed from your home. Some of the most important things to consider when dealing with a lien on your property include :
- Understanding what the lien is for and how much time you have to address
- Why it has been placed in your home?
- What caused the lien? So that you can more effectively dispute it and get it removed from your property.
- Work with an attorney or tax professional as soon as possible after receiving notice about the lien in order to give yourself enough time to resolve the issue. They will be able to assess your situation and advise you about how best to proceed.
How Do I Get A Lien Removed?
If you find yourself facing a lien, it’s important to take action immediately. The sooner you take care of the debt, the easier it will be to avoid any legal complications down the road. Here are a few strategies you can use to fight a lien on your property:
1. Negotiate With The Lienholder
The first step is to try and negotiate with the lienholder. In many cases, they’re willing to work out a payment plan or offer other terms that are more favorable to you. It’s always worth trying to Negotiate before taking any other action.
2. Pay Off The Debt
If negotiation isn’t an option or if you simply don’t have the money to pay off the debt in one lump sum, your next best bet is to try and get a loan to cover the costs. You can approach family and friends for help or take out a personal loan from a bank or credit union. Just be sure that you understand all of the terms before agreeing to anything.
3. File For Bankruptcy
If all else fails, filing for bankruptcy may be your best option. This will allow you to discharge the debt and get rid of the lien without having to sell your property. However, it’s important to speak with an attorney before taking this step, as bankruptcy should always be considered a last resort.
How To Check For Tax Liens On Property?
There are a few different ways to check for tax liens on the property. The first is to check with your county’s tax assessor’s office. They should be able to tell you if there are any outstanding tax liens against the property. Another way to check is to do a title search with your local county recorder’s office. This will turn up any recorded tax liens against the property. Finally, you can contact the IRS directly to see if there are any federal tax liens filed against the property.
To check for tax liens, you can contact your county recorder’s office or search online databases. The IRS also has a list of properties that have been levied.
What Happens When A Lien Is Placed On Your Home?
If a lien is placed on your home, it means that you owe money to someone and they have the legal right to collect on that debt by selling your property. In most cases, liens are placed on homes by creditors who are owed money.
However, there are other types of liens that can be placed on homes as well. And if you don’t pay the debt or make arrangements to do so, the creditor may eventually foreclose on your home.
Can You Sell A House With A Lien Against It?
If you are facing a lien on your property, it is important to take action and try to get the lien removed. While it can be a challenging process, there are certain steps you can take to fight a lien on your property.
If you’re trying to sell your house with a lien against it, Colorado Cash Buyers can assist you. We buy houses as-is for cash and so you might be able to pay any liens you have during closing. Contact us today to learn more about how we can help you.