Lien Meaning In California
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Liens are a common way for creditors to collect what they're owed. When someone puts a lien on your property, that property effectively becomes collateral for the debt. To sell or refinance the property, you must have clear title. A lien on your house, mobile home, car, or other property makes your title unclear.
A home lien is a legal claim on physical property (a house) by a creditor. In the case of a general lien, the creditor may lay claim to any and all of your assets such as your home, car, furniture, and bank accounts. In the event of default, the credit has a broad claim against the debtor's assets.
In California, a lien must be enforced within 90 days of filing. If the lien is not perfected within this timeframe, it becomes unenforceable, and the contractor or supplier may lose the right to payment through the lien process.
Judgments are liens upon the real estate owned by the defendant for a period of ten years from the date of the judgment.
Here are a few ways to remove the lien: Invalidate the lien. If the lien is invalid or was obtained in a manner that doesn't follow the procedural requirements under the law, an attorney may be able to strip the lien from the property. Satisfy the debt. Negotiate a lower payoff. File for bankruptcy.
A lien usually prevents sale of the property until the underlying obligation to the creditor is satisfied. If the underlying obligation is not satisfied, the creditor may be able to take possession of the property involved.
California Mechanics' Lien law provides special protection to contractors, subcontractors, laborers and suppliers who furnish labor or materials to repair, remodel or build your home.
File an Abstract of Judgment after Winning a Lawsuit Any time you win a lawsuit, you can put a lien on the defendant's real estate by recording an Abstract of Judgment in the Recorder's Office of the county where the real estate is located.
