What Is a Lien and How Does It Work
The purpose of a lien is to secure repayment of an obligation. When you obtain a loan from a lender to pay for your house, the lender files a lien against your property with the county clerk. If you do not pay back the loan, the lender can take away the house. There are other types of liens besides the finance/mortgage lien that can be placed on your house. For example, if you do not pay your property taxes, a second lien might be filed on your property.
If you want to sell a house that has one or more liens on it, the first step is to find out what liens exist on the property. In many cases, you can perform a search on the county’s website. You can also call the county clerk or go to their office and inquire regarding the existing liens.
Why You Want to Remove the Lien
Even if you are not planning to sell your house, you should start considering what options you have for clearing the lien. If you end up being in a situation where you want to sell the house, or need to sell the house, you will want to make sure that nothing can delay the process. Even after the debts are paid, it can take a few months for the county clerk to remove the lien.
Without removing the liens, the title will be unable to clear. Buyers will want a clear title on the property in order to close.
For more information or to have your questions answered, please call 713-574-0570.