What is a lien on a house?

Types of liens on homes In the most basic terms, a lien is a legal notice that’s attached to your property title because of an unpaid debt. That means it gives the unpaid party a legal claim to a portion of your property when it’s sold, and you typically can’t sell or refinance your property if the lien isn’t cleared.

What is an example of a property liens?

For example, mortgages or property tax liens are attached to the real property on which the mortgage or taxes are owed. Personal property such as a car might have a lien on it if the owner is still paying off the auto loan they used to purchase the vehicle. Judgment liens can generally be attached to both real and personal property.

How does a property lien work?

A property lien must be filed and approved by a county records office or state agency. It is then delivered to the property holder with specific terms notifying them that action has been taken to repossess a piece of property. A property lien is a legal claim on assets that allows the holder to obtain access to the property if debts are not paid.