Different Options for Property Lien Removal
If you have an outstanding debt, it is possible that a lien can be placed on your property as a means of securing the debt. This means that the creditor owed the outstanding debt will be given these funds once the property is sold. These funds are designed to satisfy the debt that the property owner owes. Liens come in different forms but work in the same way. They can be created through contract or court order. Selling your home or re-mortgaging your property with a lien is impossible. This means that it is important to understand what property lien removal options you have available.
Many homeowners are under the assumption that they have the ability to discharge a property lien through bankruptcy. However, this is not the case and is not a legal method for removing a lien. When you file for bankruptcy, it is the creditors that have the property lien against you that are paid first. The only way that you can avoid paying a property lien is if you have multiple liens against you. If you have numerous property liens and file bankruptcy, it is possible to have some of the liens discharged. However, this normally only relates to large businesses that find themselves in enormous debt.
The easiest method for lien removal that allows you to improve your credit rating is to pay the debt off in full. Many creditors that place a lien on your property will be willing to work with you in order to satisfy the debt. This means that they will more than likely allow you to get on a payment plan that allows you to pay off the amount owed over a longer period of time.
It is also possible for the property owner to get a court order that signifies the lien must be removed. The only way that you can typically get a court order to have a lien removed is to prove that the lien is fraudulent or unlawful in some way. This is done through the assistance of trained and skilled property lawyers with experience in dealing with lien court orders. Not all liens placed on your property are valid.
There are some liens that come with expiration dates. This is true of liens that are associated with federal tax debt. It is possible for a property lien to expire. This means that you can have the lien removed by requesting a certificate of release for the expired lien.