Can a Utility Company Put a Lien on My House?

Creditors use liens as a legal tool to protect their interests and ensure property owners pay their debts. As a lienholder, a creditor holds a legal claim against your property. There can be some gray areas of who can put a lien on a house when it comes to liens. The million-dollar question then becomes, The short answer is yes. But you don't have to worry as DoNotPay can help you put this issue to rest.

What Is a Lien?

A lien refers to a legal stake against an recorded with the state giving the lienholder, the creditor, in this case, a legal interest in the asset. Liens are usually granted by a court of law or a property owner. Once the lien is granted, it is filed against an asset and recorded with a county recorder.

Liens are public records. When you have a lien against your property, it prevents you from selling it as it shows you don't have a clear title. This is important because selling a house with a lien would be transferring the problems to a new owner without their knowledge or consent, which may have adverse effects later on. Before buying or selling your home, it's important to ask whether a utility company can put a lien on your house.

What Are the Types of Liens

Bank Liens	The bank puts a lien on any loan you borrow to purchase a property. For instance, if you buy the home, the bank will use the borrowed funds to pay the seller. Failure to repay the loan will see the bank seizing the property and auctioning it off to recoup the repayment.
Property Lien	Refers to a creditor's legal stake in a real estate property if the borrower fails to satisfy the debt. Some property liens come automatically when you borrow money from the bank to buy your house. This automatic property lien is referred to as a mortgage and is usually obtained through consent.
Mechanic's Lien	A mechanic can attach a lien on the property if they conduct services and you fail to pay.

How to Remove a Lien

There are several ways you can get rid of a lien on your house and prevent a utility company from putting a lien on your house, including:

Satisfy the debt
Obtain a court order to remove the lien
File for bankruptcy
Have a sit down with the creditor and negotiate with them
Wait for the statute of limitations to run out

Can a Utility Company Place a Lien on My House

Can a utility company put a lien on my house? Yes, several unpaid utilities can become liens against your house. A utility company may place a lien on your home if you have outstanding bills. This may result in potential foreclosure on the home to recover the balance. The process is usually the same as delinquency in the mortgage payment.

Remove a Lien With The Help of DoNotPay

DoNotPay eliminates the need to ask yourself a question like, can a utility company place a lien on my property? DoNotPay can help you remove a lien by amassing relevant information pertaining to your lien situation.

We will also send a letter to the debtor who placed the lien on your property, asking them to renegotiate the terms of your lien based on your needs and income. Additionally, we will fill out a lien release form and send it to your lender for them to sign.

This will allow you to get the lien off your record and give you peace of mind once you've renegotiated the debt to align with your needs. That way, you will move past your lien situation while securing your property. The best part about using DoNotPay to remove a lien is that you can do it in only three steps:

Look for the 'Remove My Lien' product on the DoNotPay official website.
Start the 'Remove My Lien' product and run it.
Answer some questions about your particular lien and give us more information about the service you want. The information will help us write a letter to your lender to resolve the issue.

DoNotPay Works Across All Companies With The Click of a Button

DoNotPay doesn't only specialize in questions like, can a utility company place a lien on my house? With DoNotPay, you can resolve similar issues, including;

Learning how to remove a state tax lien from your public record
How to find out if a lien has been placed against you
How to sell your car with a lien on it
Learning what the lien release on a car is
Determining if there's a lien on your house
Helping you fill a lien release form
How to remove a lien on your property

What Else Can DoNotPay Do?

Helping you determine whether a utility company can place a lien on your property or not is only one of the services under DoNotPay's large umbrella. Having started as an online robot lawyer, we've grown into a full-fledged service that helps clients navigate daily bureaucratic issues.

With DoNotPay, you can also: