Liens: Everything You Need to Know

Liens: Everything You Need to Know

Liens: Everything You Need to Know

Have you heard about liens but you’re not quite sure what it means? As you’re about to read, in this article, Baby Boomers Financial will break down the term for you. We’ll explain you what exactly they are, and how they actually work. Ready, set, scroll! 

Liens: Everything You Want to Know About Them

What is the Definition of Liens? 

Being closely related with property rights they are simply put, legal claims over a property. They are made to protect home or car owners etc., from non-diligent debtors. It’s possible for them to appear in your credit report, informing this way future creditors or lenders for previous debts the applicant might have. Liens are usually a term on your contract, before purchasing the property.

The Most Common Categories

Throughout your financial journey, you’ll come across different types of liens, depending on the type of property you’re attempting to buy. Here’s a list with the most common categories of them: 

Those Related with Car or Home Loans 

Some them originate from your mortage or car loans applications. The lender will put a lien on your purchase, keeping his right to foreclosure the car or the house, if you fail to meet your monthly payments. 

Judgement Liens 

Judgement liens are effective when someone wins a lawsuit against you but you’re unable to repay him in full, and/or immediately. 

Read our relevant blog post: “Dispute Debt Collections from Your Credit Report.” 

Construction or Liens of Mechanics 

This one applies to independent contractors that work on your property either for construction or repairs and more. 

Tax Liens 

If you have a tax debt to your local government, then you should expect an aggressive we must say, collection from properties, bank accounts, etc. 

Read our relevant blog post: “Advantages and Disadvantages of Bankruptcy.”

How Can You Remove Liens from Your Credit Report?

The most common and effective ways of removing a lien listed in your credit report, it’s either to pay it off, or try to make a settlement deal. But if there is any disagreement, or you believe that the listing is not legitimate, then you have the option to either correct it, or dispute it. 

Read our relevant blog post: How Loans Affect Your Credit Score.” 

Now that you learned one or two thinks about liens, don’t hesitate to contact us if you need professional help. Baby Boomers Financial is a reputable credit repair company. We can help you to effectively correct wrong listings, or remove negative items from your credit report. Let us be your financial mentors and help you to achieve your much-desired financial freedom. Give us a call, or apply here for a free credit review from us.