For me as a buyer it was easier to find a bank foreclosure so that I would not have to deal with these hidden landmines. The situation is similar when a homeowner takes out a second mortgage or home equity line of credit. If you buy a tax lien home that has a bank loan, do you have to pay it? My dad died two years ago and he had put his home in my name before he died. I had to hire a contractor because the flooding was so extensive. A person or organization can usually put a lien on a home any time a person fails to take care of a debt. Can my spouse put a lien on our house without my permission if we are legally joint tenants with full rights of survivorship? His name was not on my VA loan which I used to purchase the house, however, we added his name to the title once the sale went through and was complete. The tax office might assess additional penalties, fees and interest on top of trying to get the property. As an entity with a financial interest in the house, the bank would rather do this than see it sold. When a person has not paid his property taxes and his home also has a current mortgage, the lender often steps up and pays the balance. The Company name on their invoices was my company, & although it is still active, it has no assets. You'll need to look at the spousal laws in your state to determine whether a lien can be placed on your home as a result of your spouse's debt. Either a pre- or post-nuptial agreement will work, as long as you both sign. If a person works with a contractor, such as an electrician or a plumber, and doesn't pay his bill, the contractor can place a mechanic's lien on the debtor's home. NOLO: Debt and Marriage: When Do I Owe My Spouse's Debts? If the judge finds in favor of the plaintiff, he might put a lien on the debtor's home. Another special case is if you make your spouse an authorized user on a credit card. Is it legal to have a lien placed on my house in my ex-husband's name for his past debts? However, their attorney has stated in a letter that they could force me to sell my condo. Courts may allow a person to put a claim on someone's house in two major domestic instances. Ones that take precedence are known as superior, while secondary claims are called junior. The lien remains until your child is no longer entitled to support and you’ve paid all the arrears, or until the custodial parent agrees to remove the lien. Members of the general public and contractors or suppliers of work have protections under the Construction Lien Act and other regulations. Can an ex-spouse put a lien on the house if they were never on the deed or can legal aid put a lien against home on their behalf? He will not be able to sell it. In 2012-2013 he didn't file his income return. A court doesn't want to sell a home worth $300,000 US Dollars (USD) for a debt of only $10,000 USD, for example, but it will do so if the property truly is the only thing of value the homeowner has and no other options are available. In a community property state, your spouse's creditors can go after his share of any jointly titled assets to collect, but not your separate property. Mutsy - I know what you are saying but on the flip side some people stay away from homes that have liens on them. If he or she then runs up a few thousand dollars and defaults, legally you're the account owner, which means the credit card company will try to collect from you. Sherman is also the author of three film reference books, with a fourth currently under way. So, for example, if your spouse has unpaid medical bills, the creditors could come after your house. Contact one of them ASAP, before the house is sold. When a homeowner has one of these claims against his house, it can create serious problems, such as making it harder to find a buyer or to refinance. Common law says that your spouse's debts and income are his or hers alone, with the exception of "family expenses" that benefit both spouses. It is his tax lien as we were legal separated and filing taxes for approx 5 years prior however we were both on the deed at the time. This is what happened to an investor in New York that purchased a home at a courthouse auction. If you bought a house after you married, the home is considered community property, even if your name is on the title and your money built up the equity. Can a Lien Be Placed on My House for a Spouse's Debt? Her ex-husband, who was married once before, has failed to keep up with child support and alimony payments from that marriage, and a lien was placed on the house he shares with my mother-in … If a homeowner doesn't settle an obligation, the lienholder may legally seize and dispose of the property. More Legal Topics All … First some good news: You can't be billed for your spouse's debts incurred before you married.Your spouse's older debts are his own. Can someone put a lien on my house if there was no contract or anything signed? If you're seriously worried about your spouse's spending, a written agreement that you don't assume responsibility for each other's debts can protect you. In both cases, you will need to include copies of the contracts your neighbor signed, giving authoriz For example, at foreclosure auctions that are given at the courthouse steps many of the homes have significant liens on them. A lien is the legal term for the right of one party to sell property that belongs to someone else. In addition, New York allows judgment liens on the debtor's personal property -- things like jewelry, art, antiques, and other valuables. In community property states, you and your spouse are considered to own all marital assets and debts in equal shares. The order is known as a writ of attachment. If, however, you bought the house before the marriage, and if your spouse incurred the debts before your marriage, the house is generally safe from your spouse's creditors, unless you retitled it to give him or her co … You're also not responsible for judgments stemming from debts your spouse rang up before the marriage. Or should I just put both the lien and title in my … To place a lien on your property, a creditor must first sue you or your spouse for a court decision -- a judgment -- that you owe the money. Can a debt collector or creditor put a lien on your house for credit card debt? Bank auctions are different because the banks already cleared the liens and have a clean title to the property. Because it's a joint asset, your spouse's creditors can put a lien on the house for his or her debt. If you are behind in your income tax return or GST filings, or payment obligations, CRA has the legal power and may resort to collection actions including registering a lien on … Their invoices have my late husband's name as well as my company name on them. If you acquired the house before your spouse, it's yours alone and safe from his creditors. To do that, you can use this form: Request to Discharge Execution on Real Property. There's no exact definition of "family expenses," but Illinois, for example, has held that the term covers spousal spending on medical bills, clothing and the family home. Generally you're not responsible for any debts your spouse ran up before you got married. It is to a person's financial benefit to do all he can to get his credit back in good standing in these cases. Additionally, plaintiffs are not always limited to one recovery method once they receive a judgment in a lawsuit, so if the amount owed is big enough, they might go after things like the debtor's car in addition to the home. If you don't have an agreement, your spouse's creditor still has to go to court to win a judgment authorizing the lien. A graduate of Oberlin College, Fraser Sherman began writing in 1981. It can still affect your life together if a creditor garnishes his salary or places a lien on his assets, but that creditor can't garnish your pay or take your house. In most cases and in most states there are provisions by which your attorney may file a lien against your file and in some instances against your property if he does so through the court. I have told the contractor that I would continue to pay him monthly payments but they have put a lien on my property anyway and have kept my promise. This sequence, along with the fact that enforcement typically requires going to court, makes it quite rare that anyone would be in danger of losing their home because they weren't aware of their obligations. Is this true? In most cases, when someone owes any kind of debt acquired through borrowing, not paying for goods or services or from previous legal judgments, the person or organization owed can take him to court. In Florida, according to Florida Statutes 55.10, anyone who properly files a lien can put a lien on your house. He or she may also be able to file an action based upon your retainer agreeement. a property lien is something a creditor can attach to a property title that says you owe them money Question Details: Asked on 8/3/2011 under: Real Estate Iowa. Lawyers.com: Changing Names or Adding a Spouse to a Credit Card, LawHelpMN.org: Spousal Liability for Debts. Courts may allow a person to put a claim on someone's house in two major domestic instances. The second is during marital actions in which one spouse wants the lien in order to cover attorney costs. In my opinion, it is a better to hire a lawyer to see how about to receive payment from the lien. Liens can be general or specific, or voluntary or involuntary. Hi, I wonder if you can help me. That may seem unfair, especially if it's your spouse's creditor applying the lien, but it can happen. So keep you financial affairs separate (including title to your house) … If a creditor puts a lien on your house, you'll have a hard time selling or refinancing it unless you pay off the lien. In divorce actions, spouses can petition the court to put a lien on marital property subject to distribution when it might otherwise be sold by one spouse . You can try convincing the judge that a lien on your property isn't appropriate, for example, stating that the debt isn't really a family expense. When a person borrows money to buy a home, the lending institution places a claim on it until the mortgage is paid in full. In general, a lien is an attachment on personal or real property of a debtor seized by court order. If you are thinking of filing a lien you would have to go to the county office and file a clam under the land records. The creditor can then file the judgment with the county holding your property, creating the lien. Asked on 10/18/2011 under: Divorce, Marriage, Alimony North Carolina. Can my ex spouse's creditors put a lien on house now after he signed a quit claim deed? Is it possible for me as a borrower to file a lien on my own house against the lender? The mortgage and deed have always been in my name alone. If My Name Is on a Title But Not on a Loan, Am I Still Responsible for a Foreclosure?→, Can a Lien Be Placed on an Investment Property Owned by Multiple Parties?→, If I Order a Credit Card in My Wife's Name Is It Considered Marital Property?→. Whether you can directly put a lien on his house depends on whether you were awarded a judgment in the Decree. Doing so usually requires giving the homeowner notice and filing paperwork with local authorities, however, and it's usually not possible to sell the property without a formal court judgment first. I'm a widow. He purchased the home at $40,000 below market value but the home had $60,000 of unpaid liens that he did not know about. My ex hussband has an IRS tax lien on my house. I've also found out that there is a lien against the house because of this. Typically, a judge tries to arrange alternative ways to erase debts, such as wage garnishment, because often the value of the property exceeds the amount on the homeowner's delinquent account. If the homeowner doesn't keep up with payments, the lender might try to foreclose and take the property. and the deed was quitclaimed to me about 3 months after the lien was placed my question is HOW can I get it removed so I can refinance? GreenWeaver - I agree and this is why I think that short sales are so hard to sell because the homeowners usually have additional liens on the property. Since then he's researched and written newspaper and magazine stories on city government, court cases, business, real estate and finance, the uses of new technologies and film history. The filer also usually has to publish the claim, alerting the public to his rights. T… If someone puts a lien against your house, they are making a claim that you owe them money and until it is paid, they have a right to a portion of your home value. Most states apply common law rather than community-property rules to marital debts. If the homeowners never sell the home you are out of luck. My husband owes back child support... We were thinking of buying a house. Th… Mitch from Florida asked us: “Can credit card companies put a lien on my and my wife's house for my charge offs?” Yes it’s possible for a lien to be placed on your home for certain debts, but a … Also keep in mind that since you own half your spouse's debt, it's typically "your" debt. In order to buy these homes safely you would have to do a title search which can cost about $500 on each property that you are interested in order to make sure that the title is free of liens because if you are the winning bidder than you will assume the responsibility for these liens. I live in Wake Country, North Carolina. It wasn't on the title originally. Unanswered Questions. The house is only in my name and this lien has been put on not only after the house was deeded to me but also 2 years after his death. Because it's a joint asset, your spouse's creditors can put a lien on the house for his or her debt. In fact there have been cases in which a homeowner’s association was able to foreclose on a property with delinquent homeowner’s association dues. Reviewed by: Alicia Bodine, Certified Ramsey Solutions Master Financial Coach. Can the state of New York lien your home for unpaid business taxes? This is why if you are seeking to buy at an auction it is better to look at a bank auction. I work for myself and have no way to secure a loan. The first thing is that the husband should be warned that the original note that he will receive must be kept in a safe place in his possession. Going through a divorce and my spouse is wanting a lien put on the house in which has been agreed upon my staying in. But if not, then you may have to sell the house or the state will file a lien against the house. The title was clear 6 months ago so this is fairly recent. If we get the loan in both our names (to have both incomes considered), but only place my name on the title (if that's possible), can his "baby momma" take a lien out on our house? If the owner does this, the owner will be protected against paying twice pursuant to a mechanics lien claim. Include evidence of the value of your property and … CRA has advised that they are diligent in registering secured interests against seriously delinquent accounts. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. I almost purchased a short sale property but the bank wanted an additional $70,000 to settle the second mortgage lien placed on the property. I have paid the contractor a large sum for the work don, but not the full balance. Now 2 years later when I am doing a home equity loan I find there is a tax lien on it. It adds the amount of tax paid to the mortgage balance, however, so the homeowner still has to deal with the delinquency eventually. Also keep in mind that since you own half your spouse's debt, it's typically "your" debt. If you bought your house after tying the knot, legally it's half your spouse's; anyone with a court judgment against him can put a lien on it. I have come to find out that he withdrew money from his 401k, but never paid taxes on it in 2011. Asked By Wiki User. As before, as soon as the debt is satisfied, you must release the lien. In preparing the actual language of the note, it should be a negotiable instrument whenever possible. If the amount is high enough the lawyer may try to push the sale of the property. 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