Does a lien on property mean it has to be sold?

Re: Does a lien on property mean it has to be sold?

Not necessarily. A lien is for a debt which is secured by the property. It might be for a loan the owner got, or it might be for work done by a contractor who wasn't paid (mechanic's lien). If the debt is in default, then the property might be subject to being sold to raise money to cover the debt (the property owner would keep any proceeds over the amount of the lien). Or, the lien may simply lie dormant until the owner wants to sell, and hinder the sale until it is satisfied.

In Texas, if the home is your Homestead. It cannot be taken from you whether or not you have a lien unless that lien is a Mortgage lien or property tax lien. If it is a Mechanic's Lien, meaning that there was work done on the property and the debt is unpaid, that person may file a lien of the property. In this case, if and only if you are selling the property, must the lien be satisfied. In some cases the person who performed work on the property my sue for the balance which may result in your having to sell the property to satisfy the lien. When you close on the property at a Title Company, all liens are paid before clear title can be transferred.

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Re: Does a lien on property mean it has to be sold?

In general, the homestead of an individual is safe from any creditor unless it is for mortgage default or for failure to property taxes of any kind which in some cases also includes Home Owner Association dues.
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Re: Does a lien on property mean it has to be sold?

Not always, well it totally depends on what debt and what are the starting conditions you have signed.

Re: Does a lien on property mean it has to be sold?

A lien is for a debt which is secured by the property.
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