How to Place a Lien

Posted on August 27th, 2009 by Carmelia

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A lien is taken out on a property for a number of reasons. If a property owner takes out a mortgage on his property, he may have a lien placed on his property to receive the financing. Basically, a lien is used to secure payment of debt.

Liens can also be used on a property because of unpaid taxes, divorce and unpaid child support. It’s usually wise to entail the services of an attorney specializing on property laws, but you can file a lien by yourself. Here’s how you can place a lien.

Discuss the legal process with a lawyer or a professional who understands it better. If you don’t understand something about the process, don’t be afraid to ask. It’s only natural that you want to make sure that you’ve got all the bases covered and that you are well-informed of what you’re getting yourself into.
The court will prescribe a specific process to undergo depending on what type of lien you’re filing. When it comes to property, there is a different procedure undertaken when the lien is placed by the lienor (the owner of the property) and when the lien is placed by the lienee (the one who has the benefit of the lien).
Lien forms can be purchased at your local attorney’s office, library or even the local office supply store.
List the details of the lien on the provided form. Some details include the identification of the involved property, the purpose of the lien and the amount in question.
Mortgage lenders and contractors can directly file through the court, attached to the property in question’s title.
Most states will allow a fixed time table to file and foreclose on the lien. Check with your state agency on how long this time table will be.
You need to sue or file a case against the debtor to recover the debt owned. This is the first step you should take in filing a lien. When the creditor wins the case, the debtor is given an opportunity to pay the money owed before the lien is filed against the debtor’s property. (Learn how to collect a debt)
Once the lien is filed against the property, it cannot be solved without the lien being settled first.
Don’t expect the money to be recovered immediately. Collection can be quite a slow process, and if the property get sold or gets refinanced, other who may have filed liens before you.