Discovering a lien on your California property can feel overwhelming, especially when you’re already dealing with financial stress or need to sell quickly. Fortunately, property liens don’t have to derail your plans or trap you in your current situation.
Understanding the types of property liens in California helps you navigate your options. At Stars & Stripes Real Estate, we specialize in purchasing properties with lien complications; turning what feels like an impossible situation into a straightforward solution.
What Are Property Liens and How Do They Affect Your Home?
Property liens create legal claims against your home. Creditors can use them to secure debt payments.
When liens are recorded with California county recorders, they establish public notice. The type and date of liens determine which creditors get paid first in case of foreclosure or sale.
Liens reduce the net proceeds you’ll receive from any sale and prevent most traditional buyers from purchasing your property. Title companies require clear title transfers, making conventional sales much more difficult with outstanding encumbrances. It’s essential to understand how to remove a lien on your property.
General and Specific Property Liens
California recognizes two main categories of liens that affect property differently.
General Liens
General liens apply to all property owned by the debtor, including real estate and other assets. Federal tax liens and judgment liens are common examples that affect everything you own, not just your house.
Specific Liens
Specific liens attach only to particular property, most commonly your home. Examples include your mortgage, mechanics’ liens, and property tax liens.
Voluntary and Involuntary Liens in California
You create voluntary liens when you willingly use your property as collateral. Your original mortgage, home equity loans, and refinancing create voluntary liens with predictable terms spelled out in loan documents.
Involuntary liens are imposed without your consent due to unpaid debts or legal judgments. Tax liens, mechanics liens, and judgment liens fall into this category and can be more challenging to resolve since they may involve disputes.
Specific Types of Property Liens California Homeowners Face
Now that you understand the basic categories, here are the specific types of liens you might encounter as a California homeowner. Each has distinct characteristics that affect your selling options differently.
Mortgage Liens
Your home mortgage is a lien that will be paid off when you sell your home. If you miss payments, your lender can initiate foreclosure proceedings. In California, lenders can foreclose without court approval.
Tax Liens
When you owe taxes, government agencies like the IRS, the California tax board, or the county can place liens on your home. These liens grow with penalties and interest until paid.
Mechanics Liens
If you don’t pay contractors, subcontractors, or suppliers for work on your home, they can file liens against your property. In California, they must file these liens within 30-90 days after completing the job. Once filed, the liens can force a sale to recover payment.
HOA Liens
Your homeowner association can place liens on your property for unpaid dues, assessments, or fines. These liens accumulate rapidly with late fees and interest charges, and HOAs have the legal power to foreclose on homes for unpaid amounts.
Judgment Liens
If someone sues you and wins, they can turn that court judgment into a lien against your California property. These liens last for 10 years and can be renewed, creating long-term obstacles to selling your home.
Vendor’s Liens
When property sellers finance the sale and buyers stop making payments, sellers can place liens to protect their investment. These liens remain until the debt is fully paid or the property is sold.
How Stars & Stripes Real Estate Handles Properties With Liens
Unlike traditional buyers, we specialize in purchasing properties with complex lien situations.
We Buy Houses with Any Lien Type
Our experience includes all California lien varieties, from simple mortgages to complex combinations of tax liens, mechanics liens, and judgments. We understand state-specific procedures and can close when others can’t.
We Negotiate with Lien Holders for You
We handle lien negotiations during closing, work directly with lien holders for payoff amounts, and coordinate with title companies for smooth transfers. We often negotiate reduced settlements, maximizing your proceeds.
Veteran-Owned Expertise
Our transparent communication and proven track record help homeowners navigate challenging situations with dignity. See how Stars & Strips compares with other cash buyers like FlipSplit, SoCal Home Buyers, or Joe Homebuyer.
Get Your Cash Offer Today
Don’t let property liens prevent you from moving forward. Contact us today at (844) 932-8943 for a no-obligation consultation. We’ll assess your lien situation and provide a fair cash offer within 48 hours, handling all negotiations and paperwork so you can move on with your life.
FAQs
What are specific liens in real estate?
Specific liens attach to one particular property, like your home. Common California examples include mortgage liens, mechanics liens, and property tax liens.
What is a general lien in real estate?
A general lien affects all property owned by the debtor. Examples include federal tax liens and judgment liens that create claims against all your assets.
What are some property lien examples in California?
California property owners commonly face mortgage liens, tax liens (IRS, state, and property), mechanics liens, HOA liens, judgment liens, and bail bond liens. Each has different priority levels under California law.
Who can put a lien on a property in California?
Government agencies, contractors, homeowner associations, judgment creditors, and mortgage lenders can place liens.
What is an attachment lien in real estate?
An attachment lien is a court order that prevents you from selling your property while someone is suing you. California courts use these liens to ensure there’s still property available to pay a judgment if you lose the lawsuit.
Can I sell my house with liens to Stars & Stripes Real Estate?
Yes, we regularly purchase California properties with various lien types. We coordinate with lien holders during closing to resolve debts and ensure a clear title transfer.
