Who Can Put a Lien On Your House?

A lien on your property can be both stressful and confusing, particularly if it happens unexpectedly. To protect your financial stability, you should know who can place a lien on your house, why it might happen, and the steps you can take to address or prevent it. If you’re facing a property lien or wish to explore your legal options for bankruptcy in Chicago, schedule a free consultation with DebtPros today.

What Is a Lien, and How Does It Function?

A lien is a legal claim or encumbrance against a property used to secure the repayment of a debt or the fulfillment of an obligation. When a lien is placed on your home, it essentially gives the lienholder a legal right to take action against the property if the debt is not satisfied.

There are two primary types of liens:

• Voluntary liens: A voluntary lien is willingly placed on a property, such as a mortgage.
• Involuntary liens: An involuntary lien is imposed by law due to unpaid debts or legal judgments.

A lien remains attached to the property until the debt is resolved or the lien is legally removed. Liens can complicate property sales or other real estate transactions, refinancing, or inheritance processes.

Common Reasons Why Liens are Placed on Properties

Several parties have the legal authority to place a lien on your home. Common reasons include:

• Unpaid Taxes:
  • Property Taxes: Local governments can place a tax lien on a home for unpaid property taxes.
  • Income Taxes: The IRS or state tax authorities can impose liens for unpaid income taxes or tax debt.
• Mortgage Liens: A mortgage lien or real estate liens can be placed by a lender as collateral for a mortgage loan and remain until the loan is fully paid off or refinanced.
• Unpaid Contractor or Mechanic’s Bills: Contractors or suppliers who worked on your property can file a mechanic’s lien or construction lien if an invoice or debt remains unpaid.
• Court Judgments: If a creditor wins a lawsuit against you for unpaid debts, they can obtain a judgment lien, which allows them to claim your property to satisfy an unpaid debt.
• Unpaid HOA or Condo Association Fees: Homeowners’ associations (HOAs) or condo boards can impose liens when property owners fail to pay their dues or fees.
• Child Support or Alimony: Failure to pay court-ordered child support or alimony may result in a lien on your property.
• Medical Debt: Some hospitals or healthcare providers may secure liens for unpaid medical bills, though this varies by state.

Can a Lien Be Placed on a Property Without Notice?

In most cases, you should receive notice before a lien is placed on your property. However, in the following circumstances, you might say you were unaware of a lien:

• Unrecorded Mechanic’s Liens: A contractor may file a lien without directly notifying you, relying on public records to provide notice.
• Improper Service of Court Papers: If you are sued and not properly served, judgment liens may still be issued as part of a default judgment.
• Property Tax Liens: While the IRS or state tax authorities must provide notice, homeowners may sometimes miss such communications.

Can Someone Put a Lien on My House Without Me Knowing: Steps an Experienced Attorney Will Take 

If you suspect a property lien has been placed without your knowledge, you should get legal assistance from an experienced attorney. They will move fast with these steps:  

Conducting a Comprehensive Title Search

An attorney will initiate a thorough title search to uncover any liens or encumbrances on your property.

• Accessing Public Records: Attorneys can access county recorder databases and title companies to conduct a municipal lien search.
• Reviewing Unrecorded Liens: They can also investigate potential unrecorded liens, such as mechanic’s liens, that may not yet appear in official records.
• Assessing Chain of Title: This involves examining the property’s ownership history to identify if past liens may still affect your property.

Obtaining and Analyzing Lien Documentation

If a lien is discovered, the attorney will request official documentation and carefully evaluate its validity.

• Verifying the Basis for the Lien: They will determine if the lien is connected to unpaid debts, taxes, or judgments.
• Reviewing Filing Requirements: Attorneys will ensure the lienholder follows legal procedures, such as proper filing and notice requirements.
• Identifying Potential Errors: Errors, such as incorrect amounts or parties, can make a lien legally unenforceable against the property owner.

Challenging Improper Liens

If property liens are found to be fraudulent, invalid, or improperly filed, the attorney can take immediate action to dispute it.

• Filing a Lien Release Request: Attorneys will contact the lienholder to demand a lien release document if the lien is invalid.
• Initiating a Quiet Title Action: This legal action seeks to remove fraudulent or disputed liens from the property’s title.
• Negotiating with the Lienholder: Attorneys may negotiate settlement terms to resolve a valid lien more favorably for the homeowner.

Protecting Your Rights in Court

If legal proceedings are necessary, an attorney will represent you in court to protect your property rights.

• Defending Against Improper Judgments: They can argue against liens tied to default judgments if you were not properly served.
• Seeking Compensation: For fraudulent liens, an attorney may pursue damages against the responsible party.

Advising on Bankruptcy or Debt Relief Options

In cases where liens stem from overwhelming debt, an experienced attorney can guide you through bankruptcy or other legal remedies.

• Chapter 7 Bankruptcy: May discharge certain debts, leading to the removal of related liens
• Chapter 13 Bankruptcy: Can reorganize debts and potentially strip certain liens, such as second mortgages, under court approval

How DebtPros Can Assist Homeowners in Chicago in Resolving Lien Disputes

At DebtPros, our experienced bankruptcy attorneys in Chicago provide strategic assistance to homeowners dealing with lien issues. Here’s how we can help:

• Lien Dispute Resolution:
  • Evaluate the validity of liens placed on your property.
  • Negotiate with lienholders to resolve or remove liens efficiently.
• Bankruptcy Protection: Filing for Chapter 7 or Chapter 13 bankruptcy may eliminate or reorganize certain debts, preventing further liens from being placed on your home.
• Preventing Foreclosure: If a lien threatens foreclosure, our attorneys can help protect your home and secure your financial future.

Call DebtPros at (312) 847-3475 or contact us online to schedule a free consultation today. Let us help you clear your property title and secure your financial freedom.