Yes, creditors can place a lien on your house even if you own it outright without a mortgage. These are called involuntary liens. Creditors (contractors, government agencies, or individuals who sued you) can file a legal claim to secure payment for debts, preventing you from selling or refinancing the home until the debt is cleared.
You cannot lien a property someone does not own. Even if a lien was recorded against your home once you own it, for something he did, it would not be considered something that "attaches" to title and would most likely be considered fraudulent depending on your state laws.
A property lien is a legal claim placed against a home or real estate, typically as collateral for an unpaid debt. If a homeowner fails to pay debts such as property taxes or home improvement bills, creditors can place a lien on the property.
If you didn't get a deed of trust or mortgage against the house to secure repayment, then you do not have lien rights now. Even if you could get a valid lien now, any lien created after the existing mortgage will be subordinate to that mortgage, which is being foreclosed.
Four Types of Liens that Can Be Placed on Your Home
The three main types of liens are Consensual, Statutory, and Judgment liens, classified by how they are created: consensual liens (like mortgages) are agreed to, statutory liens (like mechanic's or tax liens) arise by law, and judgment liens (from lawsuits) are imposed by a court order to secure debt after a legal ruling.
Nevertheless, we are often asked the question about whether the lien laws require a debt be a certain amount before the mechanics lien remedy is available. In general, no such minimums exist.
File a lawsuit to vacate the lien
"An owner of a property subject to a lien always has the right to challenge or dispute the lien through litigation," states Mantzaris.
A lien serves as legal notice that you owe a creditor for an unpaid loan. Liens are not just associated with unpaid debt — they can result from defaulted property taxes, contractor claims against your home, unpaid HOA dues or judgments.
If you are behind on your debt repayments, CRA has the authority and may resort to debt collection actions, such as registering a lien on your property, including property that is held jointly. Once registered by CRA, the lien will effectively act as a mortgage.
In order to get a lien removed, you must resolve the debt in some manner. This could be meeting the lien's requirements by paying the creditor what you owe. By fulfilling your side of the contract, the creditor must perform their side of the contract and issue a release-of-lien form.
A lien affects the property's title and makes selling difficult. Mortgage liens may be easier to navigate since property owners can usually use the proceeds from the sale to pay off any pending debt. The sale may go through, but the property owner will lose some of their profit to the lienholder.
Mortgage Liens
The lien ensures the loan is secured by your house until the debt is fully paid off. This is the most common and expected type of lien for homeowners.
Judgment liens are the most severe kind and can remain listed on your credit for up to seven years. These occur when a court grants a financial interest in your assets to a creditor.
A judgment lien expires after 5 years from the date it is recorded but may be rerecorded once for another period of 5 years not less than 120 days before the expiration of the initial judgment.
Yes, it is possible. Certain liens, such as tax liens, judgment liens, or mechanic's liens, do not require a direct contract with the homeowner to be valid. For example, a court judgment or unpaid taxes can result in an involuntary lien being filed against your property even without your agreement.
When someone puts a lien on your house, it means a creditor has a legal claim against your property for an unpaid debt, acting as security that prevents you from selling or refinancing until the debt is paid, giving the lienholder the right to force a sale to get their money. Common types include mortgages (voluntary), tax liens, and mechanic's liens (for contractors) or judgment liens (from lawsuits), making your home collateral for the debt.
A property owner can choose to place a lien on their property. A voluntary lien is a claim over the property that a homeowner agrees to give to a creditor as security for the payment of a debt. A mortgage lien is the most common type of voluntary real estate lien, also called a deed of trust lien in some states.