What is a mortgage lien & how can it be removed?

Whether you’re a new homeowner or you’ve owned your property for years, there’s an understanding around the importance of paying off your mortgage loan. Mortgage liens as a result of nonpayment can put your home at risk, so understanding what they are and how to remove them is crucial 

What are liens in mortgage?

In real estate, a lien is an asset bound by contract which acts as collateral for a company or individual in the case an agreement isn’t fulfilled. 

When you sign a contract for a mortgage loan, many lenders use the home being purchased for collateral. If the borrower defaults on the loan, the home may be confiscated by the mortgage company. A lien mortgage applies directly through your lender, whereas tax liens are involuntary through the state.  

How to remove a lien on a property?

To avoid foreclosure, it’s vital to handle liens on a property. One of the first ways to satisfy a mortgage lien is by paying off the debt owed on the home. You can work with your lender to form a payment plan or negotiate for a partial payment offer. 

If the lien on your home is of no fault of your own, as a property owner, you can take your case to court to legally have the lien removed. This may be most ideal if you’ve already paid off the debt owed on the home and there was a payment mix up or if your lender used underhanded means. 

If you have a lien on your home and need help paying money owed on the property, consider speaking with your lender to form the best plan of action to have it removed.