A lien is a legal claim that can be placed on your property by a creditor. A creditor may place a lien on your home if you fail to pay a debt, such as a mortgage, loan, or credit card balance. If you sell your home, the creditor can collect the debt from the proceeds of the sale. In some cases, the creditor may even foreclose on your home. Colorado’s lien laws are designed to protect homeowners from creditors.
In order to remove a lien from your home, you must first pay off the underlying debt. Once the debt is paid in full, you can then request that the creditor release the lien on your property. The process for doing this will vary depending on the type of lien and the state in which you live.
Table of Contents
•What Is A Judgement Lien On A House
•How Do I Find Out If I Have A Lien Against Me
•What Happens When A Lien Is Placed On Your Home
•Lien On My House That Is Not Mine
•Do Judgment Liens Expire
•How To Remove Judgement Lien From Property
•How Do I Get A Lien Release Letter
•Can Someone Sell A House With A Lien on It
What Is A Judgement Lien On A House?
A judgment lien on a house is a legal claim that allows a creditor to collect what’s owed to them from the sale of your home. In most cases, a judgment lien arises when you fail to pay a debt and the creditor wins a lawsuit against you. The court will then issue a money judgment in the creditor’s favor, and the creditor can use that judgment to place a lien on your home.
When you have a lien against your property, it means that the lienholder has the right to collect their debt from the proceeds of your property sale. Liens can be placed on your property for unpaid taxes, judgments from lawsuits, or even HOA dues. In most cases, liens must be paid off before you can sell your property.
How Do I Find Out If I Have A Lien Against Me?
The best way to find out if there’s a lien against your property is to order a title search from a reputable title company.
The title company will conduct a thorough search of public records to see if there are any outstanding liens against the property. If they find any, they’ll list them in what’s called a title commitment report.
What Happens When A Lien Is Placed On Your Home?
When a lien is placed on your home, it becomes much more difficult to sell or refinance your property. That’s because potential buyers or lenders will be reluctant to take on a property that has a lien attached to it. In some cases, you may be able to sell your property “as is” with the lien still attached, but you’ll likely have to accept a lower offer from buyers who are taking on the liability of the debt. Or you need to pay the lien on closing day from your own funds.
Lien On My House That Is Not Mine
If you discover that there is a lien on your home that does not belong to you, it’s important to take action immediately. This is because liens can negatively impact your credit score and make it more difficult to sell or refinance your property.
There are a few ways that you can remove a lien from your home if it’s not yours. First, you can contact the creditor and explain the situation. In many cases, the creditor will be willing to release the lien if they realize that it’s been placed on the wrong property. Alternatively, you can file a lawsuit against the creditor in order to have the lien removed. Finally, you can also file a complaint with your state’s Attorney General’s office.
Do Judgment Liens Expire?
In Colorado, judgment liens will expire after a 6 years from the date of the judgment if they are not renewed. However, if you make any payments on the debt during that time, the clock will reset and the lien can be renewed for another 6 years.The creditor has the right to renew the lien every 6 years as long as you continue to owe money on the debt.
How To Remove Judgement Lien From Property?
If you’re trying to sell your house or refinance your mortgage, you’ll need to remove the judgement lien from your home before you can close on the sale or loan. Here are some ways to do that:
1. Pay off the debt in full. This is the simplest and most obvious way to remove a judgement lien from your home. Once you pay off the debt, the creditor will release the lien on your property.
2. Negotiate with the creditor. In some cases, you may be able to negotiate with the creditor to have the lien removed. This is typically only possible if you’re current on your payments or if you’re able to make a lump-sum payment to settle the debt.
3. Vacate the property. If you no longer live in the property that has the lien against it, you may be able to have the lien removed. This is because creditors typically only place liens on properties that are occupied by the debtor. To do this, you’ll need to provide proof to the court that you no longer live in the property (such as a utility bill in your new address).
4. File for bankruptcy. If you file for bankruptcy, all of your debts will be discharged and the liens against your property will be removed. However, this should only be considered as a last resort because it will have a negative impact on your credit score and your ability to get loans in the future.
Whatever route you decide to take, make sure you understand the process and what’s required of you before taking any action.
If you have any questions, it’s always best to speak with an attorney who specializes in debt and liens.
How Do I Get A Lien Release Letter?
If you’ve paid off the debt or satisfied the judgement, you’ll need to get a lien release letter from the creditor in order to remove the lien from your property. This letter will state that the debt has been paid in full and that the creditor no longer has any legal claim to your property.
Once you have the lien release letter, you’ll need to file it with your local county recorder’s office. This will officially remove the lien from your property and allow you to sell or refinance your home without any issues.
Can Someone Sell A House With A Lien on It?
Yes, you can sell a house with a lien on it, but the seller will need to pay off the debt in order to remove the lien. This can be done by either paying off the debt in full or negotiating with the creditor to have the lien removed. Once the lien is removed, the buyer will be able to close on the sale of the property without any issues.
If you’re trying to sell your house but it has a judgement lien against it, you may want to consider working with us. Colorado Cash Buyers is a home buying company that specializes in helping people sell their homes quickly and without any hassle. We can help you sell your house as-is, no matter what condition it’s in or how much money you owe on it. Contact us today to learn more about how we can help you!