Lien Release Lawyers
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What Is a Lien Release?
A lien is a type of claim on a property that ensures a borrower will pay off their debt. For instance, when a person obtains a home loan, the lender may file a lien on the property. This allows the lender to obtain some rights to the property in the event that the borrower is unable to repay the loan.
A lien release is when the holder of the lien lifts or relinquishes their rights to the lien. The main effect that this has is that the property can now be sold (real estate generally can’t be sold if there is an existing lien or lien on the property.
How Do I Obtain a Lien Release?
Most property liens are built into the loan contract itself, as a condition that the borrower must agree to in order to obtain the loan. However, there are various ways that a person can have a lien released or discharged. These include:
- Request one directly with the lender: in some cases, the lender may agree to lift the lien in the future under certain circumstances. This is basically a form of debt forgiveness.
- Pay off the loan: liens will usually be released automatically once the loan or debt is fully paid off.
- Request the court to intervene: In some cases, it may be necessary to file a lawsuit or a legal claim to have the court compel the lender to release the lien.
- Request a waiver: a release is for when there is already a lien in place; you may be able to request a lien waiver at the signing of the loan, which is an agreement that the lender will not place a lien on the property in the first place.
Lastly, note that most liens will expire automatically after 10 years. You may wish to check the records to see how long a lien has been in place. In some cases, you might not need to request a release at all if the lien is already expired.
What If the Lender Will Not Release the Lien?
In most cases, the lender will need to take some steps to signify that they are releasing a lien. This may involve writings or documents that serve as a statement that they are releasing the lien. A common situation is where a lender forgets or fails to formally remove the lien from a title. If this happens, the title may reflect that there is still a lien on the property when in fact there is none. This can cause problems in future transactions.
Normally, lenders have 30 days to issue a release of lien after a debt has been fully paid off. If they forget or refuse to release the lien, the borrower may need to take legal action and file a lawsuit. This will allow the court to require the lender to lift the lien.
Do I Need a Lawyer for help with a Lien Release?
Obtaining a lien release can sometimes be a complex process, especially if the lender is not willing to cooperate. You may need to hire a real estate lawyer if you need assistance with any lien issues. Your attorney can help you obtain a lien release, review documents, and perform other tasks to help your claim. Also, if you need to file a lawsuit or appear in court, your lawyer can represent you during hearings and meetings.
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Last Modified: 11-19-2014 04:18 PM PST
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