Things To Know About Lien Services
A lien refers to the claim that someone has on a vehicle or any other property that you use or possess. The individual or the third party has the claim mostly as a lender. The lender has the right to foreclose or repossess the property if the person using the property does not make payments on the particular loan or undertake their agreed obligations. Liens are common in car loans. When you apply for a car loan, some provisions allow the lender to prevent you from selling the car until you have paid your investment fully. Liens are meant to bind the debtor for a car or property until the debt is paid in full. In case the property is sold, the lien is paid to allow the sale to be completed.
Liens are commonly placed on real property and vehicles. If you purchase a vehicle from a dealer and if the car was secured using a loan from a bank, the lending institution usually puts a lien on it and keeps the title. If the debtor makes the payments, three possible scenarios come to play. The debtor might make the expected payments and clear the loan, and the bank will release the title, and other documents and the lien is removed.
The debtor might as well decide to stop making the loan payments, and when that happens, the bank will use a lien to repossess the property. The bank would continue to keep the title and documents until the vehicle is sold, and the original lien will cease to exist. The other thing that can happen is that the debtor might decide to put the vehicle for sale while the loan is unpaid. The lender having the title will make it hard for the debtor to make the sale without the necessary documentation.
There are different types of liens. Consensual liens refer to those you consent to when you purchase property through financing. When you are applying for the loan, there is a consensual lien that comes along with it and stays until you clear your outstanding payments. Non-consensual or statutory liens, on the other hand, are obtained through a court process and are intended to put a claim on an asset over unpaid bills. These unpaid bills can include tax liens that are placed against a vehicle or property by the state or federal government because of the non-payment of taxes.
There are also contractors or mechanic’s liens. If a contractor undertakes projects for a particular homeowner and they are not paid for the work done, the particular contractor can go to court to compel the homeowner to clear their debts. The court judgment may then be used to place a lien. In case the homeowner tries to sell the property, the contractor’s lien must be paid off first alongside any mortgage still owed against the property. When you are looking for liens services, work with a reputable company. Go through their website and contact them to discuss the terms and how they can be of help.