What is a Foreclosure Lien?
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What is a Foreclosure Lien?
A foreclosure lien, or mortgage lien, is a type of legal proceeding initiated by a lender against the borrower (usually the homeowner). A lien would allow the lending institution to obtain legal possession of the person’s property. This is usually done in connection with defaulted mortgage payments.
Foreclosure liens may be common in connection with various types of home foreclosure proceedings. Such liens are called also referred to by other names, such as “property liens” or “real estate liens”. If the court rather than the bank has initiated the process, the lien will usually be called a “judicial lien”.
Can Foreclosure Liens be Discharged?
While facing a foreclosure lien may be intimidating, you should know that there may be some cases in which a lien can be discharged. These may include:
- Payment: The most straightforward way to have a lien
- Expiration: A lien can sometimes be subject to an automatic discharge after a certain specified period of time. This may be dependent on state time limits.
- Debt Forgiveness: In limited instances, a mortgage debt may be forgiven or cancelled by the lending company. This is usually reserved to instances involving extreme hardships
Thus, when facing foreclosure or any type of property lien, you should seek out all possible alternatives that may be available for discharging a property lien. You may be able to keep your property in the long run. You should note, however, that judicial liens may be more difficult to discharge than ones initiated by a private company.
Are There Any Ways to Avoid Foreclosure in the First Place?
Managing your property and your finances can help you avoid foreclosure in the first place. Also, it’s crucial that you understand your rights and duties under any mortgage contract, whether it’s your first home or if you’re refinancing your property. Most lien situations result from poor planning and lack of foresight.
If you feel you may be facing foreclosure, you may be able to renegotiate the mortgage terms with your lending company. This is one way to avoid foreclosure. In any event, you may need to consult with a lawyer so that you understand all the alternatives that are available to you.
Do I Need a Lawyer for Help With a Foreclosure Lien?
Dealing with a foreclosure lien can often be quite challenging. You may need to hire a lawyer in your area if you need help with a foreclosure lien. Your attorney can provide you with legal guidance so that you know how to proceed. Also, your lawyer will be able to provide you with professional legal representation if you need to attend any court proceedings.
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Last Modified: 10-03-2016 09:46 PM PDT
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