The Definition of a Lien: A lien is a legal claim or a right against property. Liens provide security, allowing a person or organization to take property or take other legal action to satisfy debts and obligations. Liens are often part of the public record, informing potential creditors and others about existing debts.
When there is a lien in place on a piece of property, the lender has a legal claim to at least part of the residential unit or land. If the person who owns the property defaults on the lien, then there is potential to lose the house, land, apartment, or other residential housing that was initially purchased.
Because a lien is a financial obligation that is owed to a creditor or lender, it is usually not possible to sell the property for a full price. The resale value of the house or land decreases due to these types of loans. In some circumstances, no buyers are ready to purchase a home with a lien still on it. It is essential to know how these may change a real estate deal, and that’s where we come in.
If there are any liens on the property you’re purchasing, we are sure to find them and work to resolve the situation for you so that you don’t have to worry.