- A lien is a legal claim to a property.
- Liens usually result from judgments.
- The IRS can also place liens on property.
BILL'S ANSWER
A lien is an encumbrance — a claim — that is usually placed on real property. It can also be placed on something with a title, such as a vehicle. Liens are a product of a trial and judgment. A lien can also come from the IRS administratively.
For example, if the debtor owns a home, a creditor with a judgment has the right to place a lien on the home, meaning that if the debtor sells or refinance the home, the debtor will be required to pay the judgment out of the proceeds of the sale or refinance. If the amount of the judgment is more than the amount of equity in your home, then the lien may prevent the debtor from selling or refinancing until the debtor can pay off the judgment. Again, every state has its own rules about property liens, so debtors with a judgment against them who own property should review their state’s laws to learn what a creditor can and cannot do to enforce its judgment. See the Bills.com resource State Consumer Protection Laws and Exemptions for an overview of each state’s rules.
Here, I suggest you contact the creditor listed on your credit report, and learn why it placed a lien on your property. Of course, the credit reporting agencies make errors often. It is possible that they made a mistake. If that’s the case you need to notify all three credit reporting agencies of this error. Go to the Bills.com debt self-help center and download a debt dispute sample letter.
I hope this information helps you Find. Learn & Save.
Best,
Bill
Since you don't have facebook, please provide us with your location and a valid email address so we can answer it. Without a valid email address,we can't reply. (Go back to login with Facebook)
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
We get a lot of comments! To help us show our boss that this is a valuable service, so we can keep providing it, we ask you to do 2 things before commmenting:
Log in
Like us
Submit your comment!
Due to the high volume of comments received, we cannot publish and/or respond to every comment received. If you have a specific question, we recommend you search our site for an answer before commenting.
* Bills.com will not share, sell, lend, or make public your e-mail address. We reserve the right to delete any questions or comments that violate the Bills.com terms of service.
Thank you for your comment. Your comment will be posted shortly.
No Comments