6 Types of Property Liens First Time Home Buyers Should Be Aware Of
Hello and welcome! A lien is typically a legal claim against a piece of property for unpaid debt. This public record, assures that when the property is sold, monies from the sale will be used to pay back the creditor/s. While there are other liens that can be attached to a piece of property such as the weed cutting lien for homeowners who fail to maintain their lawn, here are six additional types of lien that can be attached to a home.
Mortgage lien - if you fail to make your mortgage payment, this lien gives the lender the right to take legal possession of your home and sell it to satisfy the debt.
Mechanics' lien - According to Texas Property Code Section 53.021, a party who improves real property, such as a house or the land, is entitled to file for a mechanic's lien if they are not paid for their work.
Judgment lien - If you owe someone money and refuse to pay, they can sue you. If the court rules in their favor, they can file a judgment lien on your real property and, in many cases, any personal property you own. This type of lien can also be attached to property you acquire after the lien is filed.
Income and Property Tax Liens is attached to your property if you don't pay your income taxes or property taxes.
A Federal Tax lien is the legal right of the U.S. government to seize the properties of individuals who neglect or refuse to pay federal taxes (IRC 6321). This lien gets attached to all properties of the defaulting taxpayer, such as financial assets, real estate, and personal property.
Homeowners' Association (assessment) Liens- A legal claim against your property for unpaid dues. Remember, your HOA dues are not be taken lightly because the Association does have the power to foreclose on your home, by way of a nonjudicial foreclosure, if you fail to pay your dues. If you are having financial difficulties, speak with your association about a payment plan.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
