How to Resolve Property Title Problems
Read your title report., Contact the lienholder., Negotiate with the lienholder., Pay the lienholder., Get a release form., File the signed release form.
Step-by-Step Guide
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Step 1: Read your title report.
Your title insurance company should send you a report on your property.
They compile the report by scanning the records at the Recorder of Deeds office and finding anything that relates to your property.
Go through the report and find any liens that have been placed on the property:
Mechanic’s liens.
These are put on your property when someone does work on the property but isn’t paid.
Mechanic’s liens typically expire after a year unless the contractor brings a lawsuit.
Judgment liens.
If you lost a lawsuit, then the person who won becomes a judgment creditor.
He or she could put liens on your property.
Tax liens.
If you didn’t pay the IRS, or if you haven’t paid all of your property tax bill, then the government can put a lien on your property. -
Step 2: Contact the lienholder.
In order to get the lien removed, you need the person who put the lien on the property to release it.This person is the “lienholder.” Find the lienholder’s contact number and call them up. , If you don’t want to pay the full amount of your debt, then you should try to negotiate.
The creditor might be willing to accept less than you owe.
You probably can’t negotiate with the IRS or with your city tax authority, but you could try to negotiate the amount owed to a judgment creditor or a contractor.
Offer a lump sum payment.The lump sum might be less than the debt, but the creditor knows they will at least be getting something from you.
So long as the lien sits on your property they don’t get any money.
Explain why you can’t pay the full amount.
For example, you might have lost your job or been sick.
By being upfront about why you can’t pay, you give the creditor incentive to settle for an amount less than you owe. , You preferably shouldn’t pay in cash.
Instead, pay with a credit card or with a check.
If you have to use cash, then get a receipt from the lienholder.
If the lienholder is willing to settle for less than the full amount of the debt, make sure you get a receipt even if you pay with a check or credit card.
The receipt should state that you have paid off the debt in full.
To get a tax lien released, you will have to pay the amount owed in full. , Make sure to find the correct release form and give it to the lienholder when you make payment.
Ideally, you could pay in person and have them fill out the release form while you wait.
Your state’s Contractor’s Board or equivalent agency should have waiver and release forms you can print off.You can use these to release a mechanic’s lien.
A judgment creditor usually has to file an “acknowledgement of satisfaction of judgment” with the court.Your court probably has a printed, “fill in the blank” form you can pick up.
Ask the court clerk or check the court’s website. , Once the lienholder signs the release, you should make sure it gets filed with the appropriate office.
Keep a copy for your records.
The lien won’t be released until the form is filed. -
Step 3: Negotiate with the lienholder.
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Step 4: Pay the lienholder.
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Step 5: Get a release form.
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Step 6: File the signed release form.
Detailed Guide
Your title insurance company should send you a report on your property.
They compile the report by scanning the records at the Recorder of Deeds office and finding anything that relates to your property.
Go through the report and find any liens that have been placed on the property:
Mechanic’s liens.
These are put on your property when someone does work on the property but isn’t paid.
Mechanic’s liens typically expire after a year unless the contractor brings a lawsuit.
Judgment liens.
If you lost a lawsuit, then the person who won becomes a judgment creditor.
He or she could put liens on your property.
Tax liens.
If you didn’t pay the IRS, or if you haven’t paid all of your property tax bill, then the government can put a lien on your property.
In order to get the lien removed, you need the person who put the lien on the property to release it.This person is the “lienholder.” Find the lienholder’s contact number and call them up. , If you don’t want to pay the full amount of your debt, then you should try to negotiate.
The creditor might be willing to accept less than you owe.
You probably can’t negotiate with the IRS or with your city tax authority, but you could try to negotiate the amount owed to a judgment creditor or a contractor.
Offer a lump sum payment.The lump sum might be less than the debt, but the creditor knows they will at least be getting something from you.
So long as the lien sits on your property they don’t get any money.
Explain why you can’t pay the full amount.
For example, you might have lost your job or been sick.
By being upfront about why you can’t pay, you give the creditor incentive to settle for an amount less than you owe. , You preferably shouldn’t pay in cash.
Instead, pay with a credit card or with a check.
If you have to use cash, then get a receipt from the lienholder.
If the lienholder is willing to settle for less than the full amount of the debt, make sure you get a receipt even if you pay with a check or credit card.
The receipt should state that you have paid off the debt in full.
To get a tax lien released, you will have to pay the amount owed in full. , Make sure to find the correct release form and give it to the lienholder when you make payment.
Ideally, you could pay in person and have them fill out the release form while you wait.
Your state’s Contractor’s Board or equivalent agency should have waiver and release forms you can print off.You can use these to release a mechanic’s lien.
A judgment creditor usually has to file an “acknowledgement of satisfaction of judgment” with the court.Your court probably has a printed, “fill in the blank” form you can pick up.
Ask the court clerk or check the court’s website. , Once the lienholder signs the release, you should make sure it gets filed with the appropriate office.
Keep a copy for your records.
The lien won’t be released until the form is filed.
About the Author
Jerry Reynolds
Committed to making lifestyle accessible and understandable for everyone.
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