What to Do If You Discover a Lien on Your Property

What to Do If You Discover a Lien on Your Property

What to Do If You Discover a Lien on Your Property

Imagine you’re trying to sell your home or refinance your mortgage—and you find out there’s a lien on your property that you didn’t know existed. Suddenly, what seemed like a routine transaction becomes a legal and financial obstacle. Whether it’s from unpaid taxes, a contractor, or a past judgment, a lien can seriously affect your ability to manage or sell your property.

Fortunately, liens can be resolved—but it’s important to act quickly and understand your rights. Here’s what to do if you discover a lien on your property.


1. Understand What a Lien Is

A lien is a legal claim or hold placed on your property to secure payment of a debt. When a lien is recorded, it becomes a matter of public record and can prevent you from selling, refinancing, or transferring ownership until the debt is resolved.

Common types of liens include:

  • Mortgage liens (voluntary liens tied to home loans)
  • Tax liens (from unpaid property taxes or income taxes)
  • Mechanic’s or contractor’s liens (for unpaid labor or materials)
  • Judgment liens (resulting from a court ruling against you)
  • HOA liens (from unpaid homeowner association dues)

Even if you weren’t aware of the debt—or dispute it—it can still legally attach to your property until addressed.


2. Verify the Lien

Before taking any action, confirm that the lien is valid and current:

  • Request a title search if you haven’t already—this will show all recorded liens
  • Contact your county recorder or clerk’s office to get a copy of the lien document
  • Review the document for:
  • The lienholder’s name
  • The date the lien was filed
  • The amount of the claim
  • The type of lien and reason it was filed

Sometimes liens are filed in error, have already been satisfied, or contain outdated information. Always verify the details before moving forward.


3. Contact the Lienholder

If the lien is legitimate, contact the lienholder (the person or entity that filed the lien) to:

  • Confirm the amount owed
  • Ask about interest or penalties
  • Request a payoff amount in writing
  • Discuss possible settlement or payment plans

Many liens can be resolved through direct negotiation, especially if the lienholder wants to avoid a lengthy court battle or foreclosure process.


4. Dispute the Lien if It’s Invalid

Not all liens are legitimate. Some may be filed by mistake, based on false claims, or after the statute of limitations has expired. You may be able to dispute the lien if:

  • The debt was already paid
  • You never received notice of the lien
  • The lien amount is incorrect
  • You never authorized the work or service that caused the lien
  • The lien was filed fraudulently or without a proper court judgment (for judgment liens)

To challenge a lien:

  • Send a demand letter to the lienholder requesting release
  • File a lien release or satisfaction affidavit if you have proof the debt was paid
  • File a motion in court to have the lien removed, especially if the lien is slanderous or invalid

You may need legal help, especially if a large sum of money is involved or if the lienholder refuses to cooperate.


5. Pay the Lien and Request a Release

If the lien is valid and undisputed, the most straightforward option is to pay it off. Once paid:

  • Request a Lien Release, Satisfaction of Judgment, or Certificate of Discharge
  • Make sure the lienholder files the release with the appropriate county office
  • Keep copies for your records

The lien is not officially removed until it’s released in writing and properly recorded. Simply paying the debt does not erase the lien on its own.


6. Use Escrow to Resolve the Lien During Sale

If you discover the lien while selling your home, you can often resolve it as part of the closing process. Your title or escrow company can:

  • Confirm the lien amount
  • Deduct the payoff from the sale proceeds
  • Send payment directly to the lienholder
  • Record the lien release once paid

This allows the sale to proceed smoothly without you needing to pay the lien out-of-pocket in advance.


7. Consider Title Insurance

If you’re buying property, always purchase owner’s title insurance—it protects you from future claims related to undiscovered liens. If a lien pops up after closing that wasn’t found during the title search, title insurance may cover the cost of resolving it.

If you already have title insurance and recently purchased the property, and the lien predates your ownership, contact your insurer immediately. You may not be responsible for the debt.


8. Avoid Future Liens

To reduce the risk of liens being placed on your property in the future:

  • Pay property taxes and HOA dues on time
  • Get contracts in writing when hiring contractors
  • Verify licenses and bonding of anyone doing work on your home
  • Track subcontractor payments to avoid mechanic’s liens
  • Respond to debt collection lawsuits so judgments don’t sneak up on you

A lien often signals that a debt was ignored or mishandled for too long. Taking proactive steps can protect your property and your credit.


9. Monitor Your Property Records

Occasionally check public property records for your home to ensure there are no surprise filings. You can do this through:

  • Your county recorder or assessor’s website
  • A title company
  • An online property monitoring service

This is especially helpful if you’ve been the victim of identity theft or fraud—or if you’ve had legal or financial disputes in the past.


10. Get Legal Help if the Lien Is Complex or Disputed

Liens can get legally complex, especially if:

  • You’re dealing with multiple lienholders
  • The lien amount is large or growing with interest
  • The lien is interfering with a pending sale or refinance
  • You believe the lien was wrongfully filed

A real estate attorney or debt resolution attorney can help you challenge, negotiate, or remove the lien. In some cases, you may even be able to sue for damages if the lien was filed maliciously or fraudulently.


Don’t Be Afraid To Get Help
If you’re facing legal questions, safety concerns, or emotional turmoil due to any of the situations described above—especially domestic abuse—don’t try to handle it alone. Professional guidance can make all the difference in ensuring your rights are protected and your next steps are clear. Whether you need legal advice, help with documentation, or assistance navigating local resources, speaking to an expert can bring peace of mind. Click here to get connected with professional support tailored to your situation.

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