Liens

The right of a creditor to sell collateral property when a debtor defaults on their loan

4,260 Questions
Repossession
Debt Collection
Liens

How do you put a lien on someone's house when they owe you money?

A creditor must sue in civil court, obtain a judgment and then request a judgment lien that can be recorded in the land records. A judgment can be rendered for different types of debts such as default on a promissory note, credit card debt, personal injury award, wrongful death, etc. Once a judgment lien is recorded in the land records the property cannot be sold or mortgaged until the lien is paid off. Interest begins to accrue as soon as the favorable judgment is issued.

Mechanic's liens are in a different category than other types of liens. They are intended to protect contractors. A mechanic's lien can be recorded by anyone who supplied labor or materials to make improvements to a property, including plans and designs. These are exclusively a product of state legislation and vary from state to state. Most require that the lien be the result of work performed by a licensed contractor or a licensed business which normally supplies building materials to construction sites and that the amount of the lien not exceed the normal and routine value of the work performed or materials provided.

However, to have an enforceable lien, it usually must be "perfected" in compliance with with the statutory requirements for maintaining and enforcing the lien. These requirements, which contain time limits, can include the following:

  • Providing the required preliminary notice to the property owner disclosing the entitlement to the lien (some states).
  • Filing notices of commencement of work (some states).
  • Filing notices in the required public records offices of the intention to file a lien if unpaid (some states).
  • Filing the notice or claim of lien in the required public records offices within a specified period of time after the materials have been supplied or the work completed (all states). The law varies from state-to-state on both the triggering event and the timing of this. Some states require the filing within a period measured from the time when the claimant completes its work, while others specify the event as being after all work on the project has been completed. The filing time periods after the triggering event vary, with 4-6 months being common.
  • Filing a lawsuit to foreclose the lien within a specified time period.
  • Those states that do not require a civil court judgment generally include significant penalties for falsely attaching mechanics liens to property.

For any substantial amount owed you should contact an attorney who can review your situation and explain your options in your state.

You should not file a lien or begin any legal action against a person without first contacting an attorney. If you make an error in preparing and/or filing the lien documents, the lien may be voided and you may be held liable for the other party's attorney fees. Incorrectly prepared lawsuits can have the same result. If you do not have a lot of money for an attorney, look in your phone book for the attorneys (usually "sole practitioners" who do not have an ad) who offer free consultations. You cannot afford not to talk to an attorney.

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Liens
Foreclosure
Property Law

What happens to a tax lien on a property lost in foreclosure?

Tax liens are not wiped out by a foreclosure. They must be paid in order to clear the title to the property so that it can be sold. If the lender has to pay them it will add that amount to the amount you owe.

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Property Law
Liens

How do you contest a Mechanic's lien?

I am an attorney in Cleveland, Ohio, so I am speaking from the perspective on Ohio laws. There are some passive and some aggressive ways to contest a Mechanic's Lien. First the aggressive ways. You can force the hand of the lien claimant by either serving them with a notice to commence suit or by filing a lawsuit yourself for declaratory judgment. The declaratory judgment is fairly uncommon for this purpose, I have seen it done once since I have started practice in 1984. The Mechanic's Lien statute offers the project owner only one strong way to contest the lien. That is by forcing the lien claimant to either file a foreclosure action on the lien within 60 days of the date that they were served with the notice or lose its lien rights. The problem with serving a notice to commence suit is that you may get what you asked for. Don't ask unless you are prepared for it. Even if the lien is a bad lien, you will still have to defend yourself in court and try to prove the lien bad. Again in Ohio, if you are a homeowner and the lien is against your residence, you also have a paid in full defense (this defense is not available in commercial projects). You can give notice of payment in full under the statute and turn the statute against the lien claimant as, if they do not release the lien and you prove in court that you are right about payment in full, the lien claimant will be responsible for all of your resulting damamges, including attorneys fees. I have attached some articles that I wrote for the Builders Exchange Magazine that you might find interesting.

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Cars & Vehicles
Liens

What does lien record found mean?

Somebody has a lien on whatever you are talking about. That means money is owed and the object is the guarantee.

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Home Equity and Refinancing
Liens
Deeds and Ownership

Is Alabama a lien theory or title theory state?

Alabama is a title theory state. See links below.

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Home Equity and Refinancing
Liens
Deeds and Ownership

How soon can you sell your house after buying it?

You can sell as soon as you take title: immediately.

You can actually sell it before you take title. It's called simultaneous closing. At title signing, the property would be signed over to your buyer instead of you. This may not work if you have purchased the house with a standard loan. There are usually prepayment penalties on such loans. Of course, if you're doing this kind of flip, you probably haven't approached a common lender.

The title would be signed and the monies dispersed to the proper parties during closing. You never even have to take possession of the property. (Check your state laws for any restrictions)

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Mortgages
Home Equity and Refinancing
Liens

How do you get Tax lien leads for a reasonable price or by contract or for free?

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Liens

Do involuntary liens accrue interest?

In most cases, yes. A judgment lien begins to accrue interest at a statutory rate as soon as it is issued. The rate in Massachusetts is 12%. A lien for income, property or employment taxes accrues interest from the time of the assessment. Interest can cause the amount due to increase rather quickly. The costs of obtaining the lien are also included. It's wise to pay up as soon as possible.

In most cases, yes. A judgment lien begins to accrue interest at a statutory rate as soon as it is issued. The rate in Massachusetts is 12%. A lien for income, property or employment taxes accrues interest from the time of the assessment. Interest can cause the amount due to increase rather quickly. The costs of obtaining the lien are also included. It's wise to pay up as soon as possible.

In most cases, yes. A judgment lien begins to accrue interest at a statutory rate as soon as it is issued. The rate in Massachusetts is 12%. A lien for income, property or employment taxes accrues interest from the time of the assessment. Interest can cause the amount due to increase rather quickly. The costs of obtaining the lien are also included. It's wise to pay up as soon as possible.

In most cases, yes. A judgment lien begins to accrue interest at a statutory rate as soon as it is issued. The rate in Massachusetts is 12%. A lien for income, property or employment taxes accrues interest from the time of the assessment. Interest can cause the amount due to increase rather quickly. The costs of obtaining the lien are also included. It's wise to pay up as soon as possible.

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Loans
Student Loans and Financial Aid
Civil Lawsuits
Liens

Can a lien be placed on your home due to defaulted student loans?

The lender would need to sue you and win a judgment in its favor. It could then request a judgment lien that could be recorded in the land records. Once it has been recorded against you and your property, you cannot sell or refinance your property until the lien is paid.

The lender would need to sue you and win a judgment in its favor. It could then request a judgment lien that could be recorded in the land records. Once it has been recorded against you and your property, you cannot sell or refinance your property until the lien is paid.

The lender would need to sue you and win a judgment in its favor. It could then request a judgment lien that could be recorded in the land records. Once it has been recorded against you and your property, you cannot sell or refinance your property until the lien is paid.

The lender would need to sue you and win a judgment in its favor. It could then request a judgment lien that could be recorded in the land records. Once it has been recorded against you and your property, you cannot sell or refinance your property until the lien is paid.

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Credit and Debit Cards
Debt Collection
Liens
Credit

Should you pay third-party collection agencies for your charged-off credit cards?

Opinions from contributors:Opinion

It depends.

Do you owe the money?

Can you pay the money?

Did you successfully complete a bankruptcy in which the debt was included? Was the law broken in any way while the original owner of the debt or the third party was trying to collect the money?

If you answered yes, yes, no, and no, then you should pay the debt. If you answered "no" to either of the first two questions or yes to either of the last two questions then you should probably not pay the debt.

Remember three things: 1) familiarize yourself with the Fair Debt Collection Practices Act linked above 2) aside from income tax debt, most debts cannot be collected if they are older than seven years; so, if you haven't paid on a debt or made arrangements to pay a debt in the last 7 years, don't make arrangements now, it will restart the clock on collectibility of the debt and it will be another 7 years before you can claim the debt as noncollectable 3) FAX or send a registered letter with a request to the collection agency telling them that they may not contact you, your work, or your family by phone. When you have proof that they have received the FAX or registered letter, they are legally required to stop contacting you by phone.

Opinion

You will find more benefits dealing directly with the creditor than the collection agency. If you pay the original creditor, this would eliminate the having two negative entries on your credit report. The collection agency is just a middle man who will get a % of what he recovers for a fee. Go to areofcredit.com. It is a wonderful message board with everything you need to know.

Opinion

If the amount shows "charged off" on the credit report, do not pay anyone more money. This renews the account and delays the time when it would not count on your credit report. These third party collectors buy the account for cents on the dollar in hopes that they can resurrect an old debt.

Opinion

A charge off does not indicate the debt is not valid and collectible. The SOL for debt begins at the DLA of the account.

Any collection agency that owns the debt can file suit against the debtor in the debtor's state court. The SOL for debt applies to the time in which a creditor or collector can file suit, but it is not to be considered a valid defense by the debtor, as all states allow the "tolling" of the statute of limitations.

Any payment of any debt where the original creditor is not involved should be entered into by written agreement only.

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Credit and Debit Cards
Liens
Credit

Can a credit card company put a lien on jointly owned property when only one person is the named debtor in Maryland?

The lien would be ineffective against property owned by a legally married couple as tenants by the entirety. A lien would be effective against the property if it is held as joint tenants with the right of survivorship.

You should check with an attorney in your jurisdiction. In some states a creditor with a lien against one joint tenant can force the sale of the property and split the proceeds with the non-debtor tenant. In other jurisdictions the creditor can only take the interest of the debtor and try to sell it. A lien against one joint tenant would have to be paid if the property is sold or mortgaged.

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Taxes and Tax Preparation
Credit Reports
Liens

How long are federal tax lien good for?

Ten years plus thirty days.

Ten years plus thirty days.

Ten years plus thirty days.

Ten years plus thirty days.

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Auto Loans and Financing
Repossession
Liens

Can your car be repossessed if the finance company accepts payments of less than the amount due?

Bottom line: YES it can. Although many things could factor into this answer, such as, have they given you anything in written form stating the new terms? Have you renegotiated your loan terms? When faced will something or nothing, most creditors are willing to work out something with you but are not bound by anything other than the terms of the contract. Although this point could be argued in a court of law. More input from FAQ Farmers: * If a person is sending or making payments of a lesser amount it doesn't mean the finance co 'accepts' these payments as acceptable. You would always want to discuss the situation with the finance co to see if the payment amount and dates being paid are acceptable. I work for a large finance co and we always try to work with the customer while they are trying to bring their account current. We won't repo a car if the customer is making the payments as discussed/agreed (which is always noted on an account) but if those payments aren't made or are late and we don't hear from the customer, there's a good chance repo is in process. Bottom line... the bank paid that car off for you, and they 'own it' until you pay them back. Work with them and they'll work with you.

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Repossession
Debt Collection
Liens

What are your rights in dealing with a collection agency?

According to the "Fair Debt Collection Practices Act", a collection agency must submit to you in writing who the original creditor was, the original creditors contact information (if account was sold who owns the account now), and the amount owed. After you request this information, they must send the information to you via letter. You also have rights that state the collection agency must not threaten you in any way. If they do, you can prosecute.

Additional Iformation

You have rights, but you are still responsible for your debts. If you refuse to pay the debt, whether you think you have a valid reason or not, the collection agency has a right to get a judgment and garnish your wages or bank accounts. Having had something repossessed does not mean that it was "taken care of." It was your responsibility to make sure your name was cleared rather than just assuming that it was. If the furniture had decreased in value from normal wear and tear, it is very likely that you owed more on it than it was worth at the time it was repossessed.

Most collection agencies train their employees in collection laws and they know what they're doing. Nobody likes a bill collector, but we all know that they're necessary.

Clarification: Of course, only the original creditor or their assigned legal agent (a lawyer, NOT a collection agency) can get a judgement against you. A non-lawyer collection agency can NOT get a judgement against you because they cannot threaten to sue you. Read the Fair Debt Collection Practices Act which you can get from the Federal Website (see links below). If something was repossessed, and someone is still trying to collect on it, check with a lawyer. The circumstances vary too much to be answered here without getting bogged down and missing the point of the original question.

Remember, while collectors train their people in the law of collection, they also teach them how to skirt the laws that they think people are unfamiliar with.

Individual States

Each state has a statute of limitations (SOL) for debts incurred. If your debt is outside the SOL then you are not legally required to pay it. Period. A debt outside the SOL is an affirmative defense in a lawsuit.

Rights are retained in writing only. Do not settle for telephonic exchanges, decisions, or promises. Some states, particularly Ohio, have more severe rules regarding violations of the FDCPA.

Do not ignore the DC or the dunning letters. Some DCs follow the law, but your are responsible to ensure any contact with a DC is lawful. If they violate your rights, they sure won't sue themselves over it.

When dealing with collections agencies, make sure you are familiar with the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA), at minimum.

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Car Buying
Auto Loans and Financing
Repossession
Liens

Can you register a car by mail?

You have several issues here. If you plan to drive the car in California it must be registered there, but your Military stautus exempts you from certain fees. If you plan to drive the car straight to Florida you may obtain a "One way Trip" permit from the DMV. On arrival in Florida you must register the vehicle there. DMV forms may be downloaded off the DMV website. You may be required to also submit copies of "Proof of Insurance" and Current Smog Certificates,Some States require a Weight Certificate (except Deisel motors) If you bought the car from a Dealer they can handle all these requirements. If you bought from a private Party you may be required to go to the DMV to obtain and pay for the oneway trip permit ($15). Another avenue is CSAA as they offer their Members DMV Registation services, but you may be required to go to there inpection station. Good luck

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Vehicle Titles
Repossession
Liens

Can a lending company of a repossessed vehicle put a lien against a vehicle in another state?

Repossessionalthough it is unlikely they would know about it (unless they called her and she told them) the only way to be completely safe is keep it in your name. They can't lien other property of hers without a judgment and they would have to take her to court to get that. you could draw up a promisary note between you and her so that it is not an Asset to her - meaning she owes what the car is worth - preferably more than it's worth to you.
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Liens
Housing Associations

Can an Florida HOA keep condo hotel rental income if owner is behind in HOA dues?

Probably, yes.

Read your governing documents to understand the responsibility for collecting the assessments that you owe -- and your responsibility to pay them -- and the steps that the HOA can take to settle your debt.

Stepping into your revenue stream is one way of collecting your assessments. This strategy may cost you extra fees, however, since there will be administrative expenses associated with enforcing the guidelines you agreed to when you purchased your unit. It will be less expensive for you to simply pay your assessments on time and in full.

Thanks- the condo dues have gone so far up that I cannot afford them (250%). I put 70k down on the condo and I can't even sell it for what I still owe ( welcome to Florida).

I used to own a business and it has not made it through the recession….

Thanks for you input- I will spend a few bucks to get my attorney to look at it. It is about 4,000. They are keeping for two quarters….

233234235
Law & Legal Issues
Liens

How do you file a mortgage lien?

You record the signed mortgage in the local land records office.

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Vehicle Titles
Auto Loans and Financing
Liens

If you know that there is no lien on the car and you have the title with no other name on it but yours can you do whatever you want with it?

Yes that's usually how it works unless some type of a specific hold has been placed on it.

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Law & Legal Issues
Repossession
Liens
State Laws

Where can you find the laws relating to repossessions and liens in Texas?

41.024 - Sale of Excess. An officer holding an execution sale of property of a judgment debtor whose homestead had been designated under this chapter may sell the excess of the judgment debtor's interest in land not included in the homestead. A lien can be placed against most property, with the exception of that which is held in "entirety". Texas has an unlimited Homestead Exemption, except for the land itself. An urban residence can be no larger than 10 acres, and rural homestead 200 acres for a family residence, 100 acres for a single owner. Even though a lien could be placed on the property. A forced sale of said property would not be possible. To find out all the exemptions allowable under Texas law, search "Texas Bankruptcy Exemptions" they are applicable to BK filings and lawsuit judgments. www.capitol.state.tx.us

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Job Interviews
Resume Writing
Liens

How do you sell yourself on a resume?

Here's are some quick tips from the Federal Citizen Information Center:

  • Good resumes show how your qualifications fit the requirements of the jobs you apply for.
  • Most occupations require abilities like reliability, teamwork, and communication.
  • Good objective statements focus on the employer's needs.
  • Nonwork activities add experience to your resume.
  • Tailor your resume for each occupation or job of interest.
  • Use action phrases, not complete sentences.
  • Highlight specific achievements.
  • Include quantifiable results where possible.
  • Identify increases in responsibility.
  • Mention special work related skills.
  • Identify coursework relating to the employer's needs.
  • Chronological resumes organize your experience around the jobs you have held.
  • Functional resumes emphasize skills rather than employment history.
  • Sprinkle your resume with language found in the position description.
  • Use a laser printer and keep the font size at 10 points or above.
  • Avoid mistakes by having several people proofread for you.

The following is an example; maybe it can help you:

 "I greatly appreciated your taking the time to read my self-recommendation letter. My name is Yu Ting, and I am majoring in English. I will graduate from Neijiang Teachers' college in June 2006.

  'Only after polishing will the sword be sharp; only after suffering severe winter, will the plum blossom be fragrant.' After four years' hard study, I now possess the ability to be a qualified graduate.

  Four years of hard work arms me with solid specialized knowledge. I have now mastered the basic English skills in : listening, speaking, reading, writing and translation; and I also have a good knowledge of grammar, phoneticsand linguistics. Moreover,extensive reading has broadened my mind. It acquainted me with western countries' cultures and customs. Hard work has also rewared me with high scores in my examinations.

  With a perfect mastery of this specialized knowledge, I have also developed myself in an all-round way. I have been paying special attention to fostering my managerial ability, coordinating ability and cooperating ability. So I have done many jobs in my college life,such as working as a branch secretary of the group,as an English teacher of Jianming English Training School,and as a salesman. I have not only done a good job but also have learned a lot from such experiences.

  Additionally, my self-confidence, industry, and enthusiasm pave the way for conquering the difficulties which would occur in future work.

  My attributes have prepared me to make an immediate contribution to your company. Your trust and my ability will enable us to create a new marvel together. I welcome the opportunity to meet with you to further discuss my qualifications and your needs. Thanks for your time and consideration. "

Creating a good resume is one of the most important tasks. Your main goal is to make it attractive to an employers' eyes like a beautiful woman's online profile. I has to be so well-organized and in such logically order that employers would think you are the best fit.

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Repossession
Debt Collection
Liens

What can a homeowner do to ensure that no liens are placed on their home for a repossessed vehicle?

This is a complicated area of law and the laws vary in different jurisdictions. You need to check the laws where you live. In a state where a judgment lien can be attached to your home, you may be able to simply wait until the recorded judgment lien has expired as long as the creditor takes no further steps. This is not an infrequent result. If the creditor moves forward on the judgment lien then you need to pay it in order to free your home from the lien.

In some states the creditor must choose to repossess or sue you for the amount owed. It cannot do both. In other states the debtor may be liable for any deficiency after a repossession. In Massachusetts the deficiency must be over $2,000.


In jurisdictions where a deficiency judgment is allowed there are various exemptions such as:


  • retirement accounts
  • some of your wages if you make under a certain amount
  • homestead exemptions for your residence in some states
  • some equity in your home in some states
  • certain public benefits


199200201
Liens
Deeds and Ownership
Real Estate
Real Estate Buying and Selling
Real Estate Investing

Can you transfer title deed to spouse to avoid debters placing liens on your real estate?

No you cannot. In most jurisdictions a transfer to avoid creditors is a fraudulent conveyance and can be voided by a court. You should consult with an attorney before you act.

207208209
Law & Legal Issues
Income Garnishment
Liens
Property Law

Can an attorney to whom you owe money use a lawsuit judgment to place a lien on your property?

Yes indeed. If you owe attorney fees the attorney can sue you in court. If successful, a judgment lien will be issued by the court. That judgment lien can be recorded in the land records against your property. Lawsuits for unpaid attorney's fees are not uncommon.

If you owe the attorney a fee you should try to work out a payments plan and make the payments regularly. Be sure to make it a plan you can live with. Most attorneys would rather work things out with their clients than sue them. Just like everyone else they just wanted to get paid for the work they've done.

Most states have a system for attorney fee disputes to be resolved through some form of mediation or arbitration. If you are contesting the fees, you should contact your local bar association to find out how to mediate your dispute.

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Repossession
Income Garnishment
Liens

Are there limits on the storage fees repossession agents can charge?

To the best of my knowledge there is no limit. This is their way of robbing people and unfortunatly the city usually just wants the car MOVED so they don't crack down on the fees the companies that move the cars charge. The finance company that has it repo'd pays them to tow it and allowing them to rob you keeps their costs down they have to pay the tow company also.

in the state of Virginia-each jurisdiction has a towing board made up of tow company owners and public officials that regulate what towing companies can charge for towing/impounding/storage/accident recovery/etc. and also how far your car can be taken when impounded or towed. you should check with your local police or sheriff office to see if the repo company falls under their jurisdiction as far as storage costs go when repossession is involved

Depends on the state the vehicle was picked up. To the best of my knowledge most states do not regulate this. One of the reasons for high storage rates by the recovery agency is many finance companies are asking for free storage unless the debtor redeems the vehicle. The repossessor can't afford to pay for his lot or garage without collecting storage from someone. Plus there is the additional burden of insurance while the vehicle is being stored. The average deductible for repo insurance is $1000.00 to $1500.00. for each claim. You also have the costs for security and lot attendants who not only release the vehicle but must do all the paperwork for the finance companies.

I know you don't like to hear this but the fact is many agencies are now losing money when it comes to total cost of storing the vehicles. This could all be resolved if the finance companies would quit placing the burden on the recovery agency and added all to the original repossession fee. In their attempts to hold down their own costs they are forcing the recovery company to sign unfair contracts in the first place. Strange as it may seem almost every major lender has almost the same contract and the recovery eithers signs this or has no work.

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