How Can I Remove a Lien From My Home? 

 Posted on February 09, 2023 in Real Estate

Getting ready to move to a new home only to find out you have a lien against your current house can be surprising and frustrating. In addition to everything else you need to do to get ready to move, figuring out how to remove or contest a lien can be time- and resource-intensive. Liens on a home can prevent people from making offers and can seriously delay the selling and buying process. If you are looking to sell your home and need to learn more about how to remove a lien, an Illinois residential real estate attorney can help. 

What is a Lien On a House? 

“Lien” is a word that means somebody has a legal right to some portion of your property because you owe them money. Not all liens are bad - for example, your mortgage is a lien against your home - but liens can prevent you from doing what you want with your house. For example, some types of liens that could get in the way of selling your home include: 

• A general lien - With general liens, someone who is owed money by a homeowner can lay claim to any of the homeowner’s assets, including, but not limited to, the house itself.

• A tax lien - The government can put a tax lien against a home when someone does not pay their state or federal taxes.

• A mechanic’s lien - Also known as a property or construction lien, this type of lien can be placed on a home when the homeowner does not pay for work or supplies for the home.

You may not have known you had a lien against your home until you decided to sell your house and started gathering the information and documentation you need. However, even if you did not know about the lien, it is important to take care of it as soon as possible. Most buyers will not purchase a home if they would have to satisfy a lien at closing. 

How Can I Get a Lien Removed From My Home? 

There are a few potential pathways to getting a lien removed. First, you could pay the full debt or try to negotiate a settlement with the lienholder. Some lienholders will agree to remove the lien if you have a payment plan in place. 

Depending on the circumstances of your case, you may want to try contesting the lien. This involves disputing the lien statutorily in court or by filing a lawsuit against the person claiming the lien against your home. These can be complex processes that take time to complete, so be sure to have the help of a real estate attorney before you begin. 

Contact a Lake County Residential Real Estate Lawyer

Ensuring you remove any liens from your property can be a headache, but a Lake Forest residential real estate attorney with Newland & Newland, LLP can help you understand what you need to do. In addition to removing liens, we can help you get ready to sell your house, make sure you avoid common homebuyer’s mistakes, and provide excellent legal representation during the negotiation process. Call 847-549-0000 today. 

Source: 

https://www.investopedia.com/articles/credit-loans-mortgages/090816/it-bad-have-lien-your-house.asp