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Reasons a home has a lien on it

On Behalf of | Jul 31, 2019 | Residential Real Estate

Before moving to a new home in Massachusetts, or moving out of the state entirely, one may first have to sell a residential property. Upon setting all the necessary wheels in motion, the owner may discover there is a lien on the house.

SFGate offers some of the common reasons for home liens. Learning the reason(s) behind the lien is key to resolving the issue and successfully selling the home.

Tax liens

People behind on paying their state or government taxes may find the IRS has stamped a lien on their residential property. After successful payment of the back taxes, the lien goes away, which through the completion of a payment plan.

Property lien

For legal reasons, a home could have a property lien placed on it. Should that happen, the property holder can have a difficult time successfully selling the home until discovering the reason behind the lien and taking care of it. One example of a property lien is a mortgage lien, wherein the lien exists as the result of an unpaid mortgage, as demonstrated by USA Today.

Other examples of property liens are when a pool or HVAC company places a lien on the property due to unpaid bills. Decorators can also place property liens on a home.

Mechanic’s lien

Say that a residential property contractor remodels or builds a home, but the homeowner does not pay the bill in full. Under such circumstances, the contractor has the right to put a mechanic’s lien on the property.

Homeowners should first check the validity of liens before paying them. Additionally, they should ensure the removal of the lien after making all necessary payments or paying all necessary debts.