As long as you own property, it’s best to familiarize yourself with what a lien is. It may seem like a complicated legal term, but we assure you that it’s much easier to understand what it entails and how you can deal with it. If you’re a property owner who’s looking into trying to understand how liens work in South Carolina, you’ve come to the right place!
Property liens in South Carolina will definitely be easier for you to understand once we delve into what liens are and what this entails for property owners. Let’s get to it below.
What Are Liens Exactly?
Liens are usually attached to debt. A lien is basically a legal term that can be attached to any property. This means that it can be used as collateral to pay debt.
These are usually placed upon a property so creditors, such as banks, can still collect money owed to them. Liens are essential for these creditors to have certain legal rights to the property. They protect them from debtors who can’t pay or refuse to pay their obligations to the creditor. Sometimes, the creditor may choose to sell the property to resolve this issue.
Having a lien on a property means that what the owner can do with the asset may be limited. Since creditors are still owed a certain amount, they’re given a stake in the property. This is why homeowners likely can’t sell a property before a lien is lifted, and may face some complications if they do.
Types Of Liens
Now that we know what a lien is, let’s get into the different types of liens to see what their implications are.
IRS Lien
These kinds of liens are filed by the federal government. Property owners who fail to pay income taxes are targeted by these liens so the government can potentially foreclose their property if they refuse or can’t pay.
Mechanic’s Lien
If you have work done by a contractor on your property and refuse to pay them, they can file a mechanic’s lien to protect what they’re owed.
Judgement Lien
A judgement lien is one that usually occurs after a court’s judgement against you. This usually comes after a dispute wherein someone takes you to court for refusal to pay debt. The court may then file a judgement lien against you which will then affect your property.
Child Support Lien
Refusing to pay court-ordered child support can grant you this type of lien. This is also established by the court.
What Should I Do About liens?
Contrary to popular belief, liens aren’t all bad. There is a specific reason why they’re imposed and there are ways to make sure they are resolved. They’re a protective measure after all, and like other protective measures that need to be established, they can be removed if the creditor sees no more use for a lien to be imposed upon the debtor.
Here are some ways you can remove a lien:
Dispute The Lien
Only turn to this solution if you have valid reasons to believe that the lien imposed on you is invalid. The typical way to do this is to apply for a court order so the request can be reviewed by a judge. You can also approach your insurer for title insurance and file a claim through them.
Pay Off The Amount You Need To Remove The Lien
Make sure that after this amount is settled with the lien holder, the lien will disappear immediately. To be safe, you can consult a lawyer to oversee the process.
Negotiate The Amount Needed To Remove The Lien
Some people can’t pay in full, and this doesn’t mean they can’t have a lien removed. Speak to the lien holder and agree on a partial amount to pay to release you from the lien.
Once liens are removed, property sales can usually commence. Contact us at Sell Your House Fast – Greenville, Spartanburg, Anderson, Pickens where we buy houses fast for cash. We buy in any condition, so no need for clean-ups! We guarantee no realtors, hidden fees, commissions, and repairs needed to complete the sale. Just visit our website now and we can work together instantly.
