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Defintion

What is a Lien? A lien is a legal claim or right against a property, typically used as security for a debt. Liens are usually recorded with local government offices and gives the lienholder certain rights over the property until the debt is satisfied. Common types  include tax liens, judgment liens, and mechanic's liens Priority: Multiple liens on a property are typically paid in order of their filing Release: Requires formal action by the lienholder to remove Some liens can lead to forced sale of the property

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Frequently Asked Questions:

Common Scenarios:

  • Unpaid property taxes leading to a tax lien

  • Court judgments resulting in judgment liens

  • Unpaid contractor work causing mechanic's liens


Dealing with Liens:

  • Pay the underlying debt to satisfy the lien

  • Negotiate with the lienholder for a settlement or payment plan

  • Contest the lien if it's believed to be invalid or improperly filed

  • Seek legal advice to understand your rights and options

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