Start My Answer
loading...

What is a Lien on a House?

Dena Standley | April 04, 2023

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

It's best to avoid a judgmnet lien on your house.

Summary: A lien on a house means that someone else, in addition to the title holder, has a legal claim to the property. Liens can be voluntary or involuntary, good or bad, as this article by SoloSuit explains.

Mortgages are the most common liens on homes. The property title is in your name when you take out a mortgage. However, the lender has some legal claim to the house until you fully repay the loan. That legal claim is called a lien—an attachment to the home that gives the holder some property rights.

Creditors use liens to ensure borrowers pay their debts. It's like using the house as collateral for a loan. And the lender can foreclose the mortgage to recover their money if you fail to repay as agreed.

But mortgages are just one type of lien. Some liens are less voluntary and may come as a surprise to consumers. This article explores lien types, how they affect the title to a property, and how to prevent a judgment lien on your house.

Settle with SoloSettle

Make an Offer

What types of liens can be placed on a house?

Liens generally fall into two groups—voluntary and involuntary. As the names suggest, the former is placed on the house with the owner's permission, while the latter applies against the owner's wishes.

Voluntary liens on a house include the following:

  • Mortgages
  • Second mortgage/ junior-lien

Voluntary liens are “good” because they allow the borrower to use the home while repaying the loan. These liens are removed from the house once the lender gets their money in full and are typically no cause for worry if you keep up with your repayments.

What are the different types of involuntary liens on a house?

Financial troubles, disagreements between homeowners and contractors, and missed tax payments can all result in you “co-owning” your house with someone else.

The following are examples of involuntary liens you can have on your house.

  • Mechanic's lien: You should pay for services if you hire someone to do major renovations or improvements on your house. Failure to pay them can result in the contractor placing a lien on your home. If the county approves the lien, you must either pay them or negotiate a settlement; otherwise, you cannot transfer ownership with a clean title. Without a clean title, you will be unable to sell your house.

  • Property tax lien: If you owe the government property taxes, they can place a lien on your house until you catch up on your responsibilities. Local, county, state, or federal government can claim part of your property for the amount you owe.

  • Homeowners Association (HOA) liens: You must pay your HOA dues and avoid breaking any housing codes; otherwise, the association can get a lien on your house.

  • Judgment lien: Judgment liens come into effect because of court orders. For example, suppose you fail to pay your unsecured loan, and the creditor or a debt collector takes you to court. The judge can issue a default judgment if you don't Answer the Summons. Or the litigation process can prove that you are indeed guilty. If that happens, the creditor has several options for recovering their money. They may obtain permission to garnish your wages, freeze your bank accounts, or place a lien on your property.

So, is it bad to have a lien on your house? Let's explore some of the consequences of having liens on your home below.

How does a lien on my house affect it?

Liens are legal, so you cannot just wish them away. Having a lien on your house has several disadvantages, including the following:

  • Many buyers want to avoid a home with liens, as it is difficult, if not impossible, to secure a mortgage on a house with a lien against it. As a result, your listing may stay on the market too long.
  • Liens reduce your house's market value.
  • Even if you sell, you must pay part of the amount to the lien holder.
  • Your credit score will drop if liens against your property reach the credit monitoring bureaus.
  • It becomes harder to refinance your mortgage if need be.

For most consumers struggling with debt, judgment liens are a possible reality.

How to prevent the court from issuing a judgment lien

Many debt settlement companies wrongly advise consumers to refrain from paying their unsecured debts. Some even say to ignore debt collectors' lawsuits. However, ignoring a court Summons is the quickest way to get a judgment lien on your house.

Instead, if a creditor sues you, file your Answer within the deadline at the court. Be sure to send the plaintiff a copy of the document.

Use SoloSuit to generate your Answer in minutes.

After filing your response, you can offer to settle the debt out of court. Or you can invoke the arbitration clause in your contract to force the lawsuit out of court. SoloSuit provides these products cheaply for consumers who cannot afford to hire an attorney.

Remember that involuntary liens taint your property and may put off potential buyers. It's in your best interest to do your all to prevent or remove them when possible.

Related: How to Get Rid of a Judgment Lien on a Property.

To learn more about how to respond to a lawsuit and avoid a judgment lien, check out this video:

What is Solo?

Solo makes it easy to resolve debt with debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt. SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

SoloSettle can help you contact your debt collector or creditor and negotiate the debt to settle for less, all online. It simplifies and streamlines the process to settling your debt.

No matter where you find yourself in the debt collection process, Solo is here to help you resolve your debt.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started

Contents