A home lien is a type of legal interest in a particular home. Individuals or companies can file home liens against a particular property that they have some type of interest in, in order to prevent a homeowner from selling the house before paying off a debt.

Home Liens

Home liens can come in a few different varieties. For example, a homeowner could have a tax lien, a mechanics lien, or a judgment lien placed on their home. With any of these liens, when the homeowner sells the house, the money from the sale has to go to pay off the individual or company that placed the lien before anything else. For example, if you do not pay your taxes, the IRS can put a tax lien on your home. If you sell your house, you have to pay back the IRS before you can keep any of the money.

Restrict Financing

In addition to restricting the ability to sell the house, home liens also affect your ability to refinance or get a home-equity loan. Before any loan can be refinanced, the lien must be removed which means that homeowner has to repay the debt to the company that put on the lien. 

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