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Can you sell your home with a lien on your property?

On Behalf of | Jul 1, 2022 | Real Estate Law |

A lien is a claim against your assets for a debt you owe. A lien on your property limits what you can do with the property until you settle the debt.

Whoever holds the lien holds a stake in your property until the lien lifts. When a lien lifts, you regain full ownership of your property.

Are all liens involuntary?

The government can file a tax lien on your home if you do not pay your taxes. Contractors that worked on the construction or remodel of your home can file a mechanic’s lien to collect if you fail or refuse to pay. Even unpaid child support can result in a property lien in California. Those are all involuntary liens. By contrast, if you have a mortgage, you have a voluntary lien on your home from the bank that gave you money.

Can you sell your home with a lien?

Whether you can sell your home with a lien depends on the type of lien. You can sell your home with a lien from the bank if you kept up with your payments and pay off what you owe as part of the sale. However, you must settle most other liens on your home before you can sell. For example, if a property tax lien is on your home, you must pay the tax owed before you can refinance or sell your home.

The intent of a lien is for the creditor to protect their right to a debt you owe. You can have a lien lifted by repaying and settling the debt. If you feel that the lien is invalid, you may petition the court to have the lien removed.