How To Get A Lien Removed

How Do I Get a Lien Removed?

Have you ever wondered, “How do I get a lien removed?” As many move through the selling process, they get hit with a lien, and it may feel like a roadblock. But that doesn’t mean you have to abandon your home-selling dreams. You have a few different options for getting that lien out of the way so you can move on to selling your home. First, let’s dive into what a lien is, then we’ll talk about how to remove it.

What Is a Lien?

A lien is a legal claim placed on an asset by a creditor to secure debt. In other words, for a homeowner, a lien says, “If you don’t pay back this debt, you can’t sell your home.”

Liens often come from:

How Do I Get a Lien Removed?

Generally speaking, the simplest way to get a lien removed is to pay back the debt that’s keeping the lien in place. For example, if you still owe money to the bank for your mortgage, you can pay that amount off, avoiding both a foreclosure and the effects of the lien. Or if you owe state taxes, paying those off will get your lien removed.

Now, let’s look into how this plays out for California residents, in particular.

How Do I Get a Lien Removed in California?

The process of getting a lien removed in California is a lot like that in other states, but the entities you have to deal with are different. Here’s how to get the most common types of liens removed in California:

  • Mortgage-related lien. Removing a lien on your home connected with an existing mortgage is typically handled as part of the closing process. The buyer pays an amount in excess of the amount you owe, and the bank provides documentation saying the lien has been removed.
  • State tax liens. When you pay the California Franchise Tax Board (FTB) the back taxes you owe, they’re required to record a certificate of lien release. Typically, during a real estate transaction, the amount to satisfy the lien can be kept in escrow. You may also get a partial release from the FTB, but this is on a case-by-case basis.
  • A lien by a contractor or other vendor. This is often referred to as a “mechanic’s lien.” You can remove it by paying off the debt. The contractor or vendor will then provide you with a release of lien form. You can also negotiate with the lien holder to get them to lower the amount you owe.

How Stars & Stripes Realty Can Help Remove a Lien

Stars & Stripes Realty can purchase your home even if there’s a lien on the property. If you don’t want to go through the process of getting the lien removed yourself, Stars & Stripes can handle it during the closing process.

Even though the amount needed to satisfy the lien may impact your home’s selling price, many would rather take care of a lien this way instead of doing it manually, step by step, on their own. Reach out to Stars & Stripes today to get more details.

FAQs

How do I know if I have a lien on my property?

You can find a lien on your property by doing a title search. This is typically performed by a title company as part of a real estate transaction, but you can hire one on your own any time to check for liens.

Do I have to pay back the entire amount in the lien?

Sometimes, you may be able to get the lien removed without paying the entire amount. It depends on the lien holder, or the person or company you owe money to. Some may be motivated to let you pay less than the amount owed to avoid the time and expense associated with collecting the money.

What happens if I pay the lien amount, but the lien holder doesn’t remove the lien?

If the lien holder delays in removing the lien, you should write a formal request to have the lien removed, complete with evidence of you paying the required amount. If they continue to delay, it may be necessary to file a petition with your local court. It’s best to consult with a real estate attorney when someone refuses to remove a lien.

Can I sell my house if it has a lien on it?

Yes, you can sell your house even if it has a lien on it by using a company like Stars & Stripes Realty. The lien will most likely be paid off using proceeds from the sale of your home if you’re unable to pay it yourself.

What is a “partial” release of a lien?

A partial lien release is when the creditor, such as a contractor, agrees to release the home for sale, but some of the lien still remains on the property.