Who Can Put a Lien on Your House in New York?
Many homeowners have mortgages on their homes, and a mortgage is a lien. There are many types of liens, but mortgage loans are the most common.
A lien gives someone financial claims to a house. While liens are common, they can also complicate a home sale.
You must repay the liens when you sell a house with a lien in NY. Have you ever wondered who can put liens on properties and why people do this? Are you wondering how liens affect a home sale?
Continue reading this guide to learn about liens on homes in New York.
What Is a Lien on a House?
A lien is a legal claim against your house that a person or organization can file when you owe them money. It attaches to the property itself, not only to you, so it usually has to be paid off or resolved before you can sell the home with clear title. The most common lien is a mortgage, but unpaid property taxes, an unpaid contractor bill (a mechanic’s lien), and court judgments can all create liens too.
Types of Liens in New York
Mortgage liens are common. When you buy a house with a loan, the lender places a lien on the house. This lien gives the lender rights to your home if you fail to pay the mortgage.
The lender can order a foreclosure and keep the money you owe on your mortgage. The lender also requires repayment if you sell the loan. The lien amount changes as you pay down your mortgage balance.
Here are some other types of liens you may have on your New York property:
Tax Liens
Tax entities can place liens on your house if you fail to pay the taxes you owe. For example, your county or state may place a lien on your house if you have overdue property taxes.
The Federal government may place a lien on your house if you owe tax money.
Mechanic's Liens
Building contractors can also use liens when you owe money. They use mechanic’s liens to place a financial claim on a home.
For example, suppose you hire a contractor to remodel your kitchen. If you owe the contractor money and won’t pay, they can place a mechanic’s lien on your house.
Like all liens, this one requires repayment if you sell your house.
Judgment Liens
A judgment lien is another type someone may place on your home. A creditor can place this on your home if a court rules against you in a case. The court must create a judgment for the creditor to file a lien.
Do liens expire? Judgment liens expire 10 years after someone places them on a property. However, a creditor may have the legal right to renew it.
Frequently Asked Questions
What is a Lien on a House?
A lien is a legal claim someone can place on your home when you owe them money. It stays attached to the property until it is paid or released, and in most cases it must be cleared before you can sell the house with clear title. A mortgage is the most common lien, but unpaid property taxes, contractor bills, and court judgments can create liens too.
If You Are Selling a House With a Lien
Liens complicate a sale, but they do not stop one. You can still sell, and each lien type clears its own way: paid off, released, bonded, or discharged at or before closing. We wrote a complete plain-English guide with every step, the Nassau and Suffolk specifics, and the primary sources: selling a house with a lien in New York.
If you want to skip the process entirely, we buy Long Island houses with liens for cash, as-is, and our title company handles the clearance. Before you hand a lien-heavy house to any cash buyer, confirm they are the real thing: here is how to tell whether a we buy houses company is a ripoff.
