If you want to get ready to sell your home or if you are looking to buy one, you will want to know what a lien is and who is going to pay for it. Essentially, you should think of a lien as an unpaid bill that must be satisfied before the home can be sold. There are three main types of property liens that will derail a home sale or home purchase in New York.
According to the Property Loggy Magazine, a mechanic’s lien is applicable when you hire a contractor. Let’s say that you hired somebody to complete renovations on your home and you have not yet paid them. Sometimes what will happen is they will actually file for a lien against your property to make sure that they get paid whenever you get ready to sell that property. So, a mechanic’s lien will actually be satisfied before you can actually turn over the property. Oftentimes, it is the net proceeds from the sale of that home that is going to be taking care of that unsatisfied lien.
The second type of a lien is a judgment lien. Judgment lien is just like it sounds. This applies when you go to court and you lose, and there is a judgment that is levied against you and your assets. For most people, their biggest asset is their home. If you do not have a homestead, your home could get a lien on it. The third kind of a lien is a tax lien. A tax lien can be slapped on your house. Usually, it will not be from the federal government but it will actually be from your county in the form of unpaid property tax.