When it’s involuntary, the word “lien” is never something good in real estate. A lien is the right of one party to take and retain possession of a property that belongs to somebody else until the owner repays a debt. Property liens are legal notice bound to your property. It becomes public record. Creditors realize that placing a lien on a property is an efficient tool for collecting debts. In these situations, they are going to use involuntary liens. The more you realize concerning involuntary liens, the better you can safeguard yourself from this damaging action.
Involuntary vs. Voluntary Lien
Liens are not always detrimental. Property owners can decide to sign up for a voluntary lien, like a mortgage agreement, for paying for the property in payments. Homeowners approve and agree to voluntarily liens, enrolling for them using collateral. Involuntarily liens, at the same time, come into play because of the property owner’s negative action or inaction. A 3rd party can put a lien on the property as an ultimatum to the owner – pay the liabilities or you are going to legally lose possession of the property.
Who Can File an Involuntary Lien?
There are multiple kinds of liens that could be a threat to your prospective homeownership. Involuntary liens can come from 3rd parties like the IRS mortgage lenders, home repair vendors, mechanics, a plaintiff in a lawsuit toward you, a credit card issuers, law enforcement, or regulatory groups like an Arizona Department of Environmental Quality. You could face an involuntary lien when you:
- Don’t pay your mortgage in accordance with the legal agreement
- Don’t pay the IRS your taxes when it’s tax season
- Break the stipulations of a payment schedule for costly home repairs
- Fail to pay mechanics for home-associated services
- Have a judgment toward you from a civil court outcome
- Fail to fix an environmental risk on your property
- Break the law in some way, like failing to pay for multiple parking violations
Thankfully, not just anybody has the power to put an involuntary lien on your property. Federal agencies like the IRS have this power, but most creditors waive this right. There are agreements with creditors, nevertheless, that can question you if you agree to a lien in the occurrence of failure to pay. Go over the fine print of the agreement when you sign up for a credit card or buy something. Overall, vehicle and mortgage lenders, the legal system, and mechanics/contractors all have the power to put liens on properties without your permission.
Dar-Liens Offers Lien Processing and Filing in Arizona
Dar-Liens Offers Processing and Filing of the following types of Liens: Pre-Liens, Notices to Owner, Medical Liens, Construction Liens, Mechanics Liens, HOA Liens, 20 Day Preliminary Lien Notices, and more.
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