Lien . Frequently Asked Questions
Now that you know the basics, let’s answer some frequently asked franchise questions.
What does it mean to have a lien against you?
When you have a lien against you, it means that someone has a right to your property under specific circumstances. Usually, these may involve defaulting on an agreement or loan. The government will place a lien on your property for unpaid taxes as well.
Liens doesn’t have to be a bad thing. Sometimes, that means you haven’t finished paying off debt. Anyone who has a mortgage has a mortgage on their home. It is also common if you have a loan for solar panels.
How do I remove the foreclosure from my property?
Most commonly, you get your booking canceled by either paying off your debts in full, paying to work under an agreement, satisfying a judgment, or paying taxes. If you feel that a reservation has been placed wrongly, there are certain circumstances in which you may have to go to court to have it removed.
Will a mortgage affect my credit score?
If you have a lien, there is a chance that it will affect your credit score because it can appear on your report as a negative element, especially if you have something like an unpaid judgment. It’s common to have a lien on your home or car if it’s a car loan, but if you have things like provisions, mechanics liens, or back taxes to take care of, it can be an even bigger challenge to qualify.
Can I refinance my home if there is a federal tax lien on it?
In general, tax liens must be paid before closing your home. The only exception is that the FHA allows you to close a tax lien under certain circumstances if you follow a payment plan and have made documented payments for at least 3 months. We recommend speaking with a home loan expert about your situation.