Lien

Lien: A charge on property for the satisfaction of a debt.

Lien: A right to keep possession of property belonging to another until a debt owed is satisfied.

Satisfying and Removing a Lien on Your Property

A lien, a claim against property made by a bank in order to secure payment of a mortgage debt, makes the property collateral against money owed to the bank.

“The claim ties up your property as a way to collect money that you owe,” says Joseph Laface, chairman of the Real Property Committee of the Nassau County Bar Association.

Liens on property from a primary mortgage are the most common types of lien.

“Whenever you take out a mortgage to finance a property, the bank automatically has a lien on it,” says Laface. Failure to pay the mortgage can result in bank enforcing the lien, meaning they can proceed with foreclosure and seize the property if the debt is not settled.

In order to remove a lien from a property, the homeowner must satisfy the debt and file a notarized release of lien form with the county recorder’s office, or obtain a court order to remove the lien of was placed through fraud, coercion, bad faith, or other illegal means. Homeowners may also negotiate with the lienholder to remove a lien, which often entails agreeing to higher monthly payments and higher interest on the mortgage loan.

“If the person or entity that recorded the wrongful lien refuses to cooperate in removing it, and the lien is creating a cloud on title to your property, you can proceed with litigation by filing a Quiet Title Action. This is a special type of lawsuit designed to clear title to your property. If successful, you may also be able to recover your attorney’s fees and costs,” says Carlos Arboleda, a Phoenix bankruptcy attorney.

Most states have guidelines when it comes to satisfying a lien.

Florida law, for example, states, “Within 60 days after the date of receipt of the full payment of the mortgage, lien, or judgment, the person required to acknowledge satisfaction of the mortgage, lien, or judgment shall send or cause to be sent the recorded satisfaction to the person who has made the full payment.”

Lien

Lien: A charge on property for the satisfaction of a debt.

Lien: A right to keep possession of property belonging to another until a debt owed is satisfied.

Satisfying and Removing a Lien on Your Property

A lien, a claim against property made by a bank in order to secure payment of a mortgage debt, makes the property collateral against money owed to the bank.

“The claim ties up your property as a way to collect money that you owe,” says Joseph Laface, chairman of the Real Property Committee of the Nassau County Bar Association.

Liens on property from a primary mortgage are the most common types of lien.

“Whenever you take out a mortgage to finance a property, the bank automatically has a lien on it,” says Laface. Failure to pay the mortgage can result in bank enforcing the lien, meaning they can proceed with foreclosure and seize the property if the debt is not settled.

In order to remove a lien from a property, the homeowner must satisfy the debt and file a notarized release of lien form with the county recorder’s office, or obtain a court order to remove the lien of was placed through fraud, coercion, bad faith, or other illegal means. Homeowners may also negotiate with the lienholder to remove a lien, which often entails agreeing to higher monthly payments and higher interest on the mortgage loan.

“If the person or entity that recorded the wrongful lien refuses to cooperate in removing it, and the lien is creating a cloud on title to your property, you can proceed with litigation by filing a Quiet Title Action. This is a special type of lawsuit designed to clear title to your property. If successful, you may also be able to recover your attorney’s fees and costs,” says Carlos Arboleda, a Phoenix bankruptcy attorney.

Most states have guidelines when it comes to satisfying a lien.

Florida law, for example, states, “Within 60 days after the date of receipt of the full payment of the mortgage, lien, or judgment, the person required to acknowledge satisfaction of the mortgage, lien, or judgment shall send or cause to be sent the recorded satisfaction to the person who has made the full payment.”

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