Liens -

The most common type; the bank holds a claim on your home until the loan is paid off.

Alex soon realized the power of a lien. Because it was a public record attached to his property, he could not provide a "clean title" to his buyer. No bank would approve the buyer’s mortgage while the lien existed, effectively freezing the sale. The Resolution To save the sale, Alex had a few options:

Alex chose to pay a negotiated settlement. Once the supplier filed a with the county recorder, the "cloud" vanished, and the sale proceeded. What You Need to Know About Liens The most common type; the bank holds a

Resulting from a lawsuit where a court awards a creditor the right to claim your property if you don't pay a settlement.

Alex was ready to sell his starter home. He found a buyer, agreed on a price, and was weeks away from closing when his real estate agent called with bad news. A title search had uncovered a "cloud" on the title: an active mechanic’s lien . No bank would approve the buyer’s mortgage while

Filed by the government (IRS or state) when property or income taxes go unpaid.

Once paid, the creditor is legally required to file a release in the same public records office where the lien was originally recorded. What You Need to Know About Liens Resulting

Some liens, like certain judgment or tax liens, have a statute of limitations and may expire if not renewed by the creditor.