How to Obtain a Lien Release in Wisconsin the Easy Way
People go through financial struggles that make them unable to settle their mortgage payments or car loans. The IRS may also place a lien against you for not paying state taxes. Not to mention that a home improvement contractor or an ex-spouse can claim a lien against you for failure to pay for repairs or child support. Don't fret because you can take action and get a lien release in Wisconsin.
At DoNotPay, we understand that some circumstances are unavoidable, and it's not your intention to default on your debt, IRS tax payments, house mortgage, or child support. We can help you take advantage of the law and the claimant's interests in the lien against you to free yourself from the lien and avoid seizure of your property and assets.
DoNotPay lets you remove a lien on your car or get a lien release on your home in three simple steps. We will gather all the information about your lien and draft a letter to your creditor, IRS, or other claimants to renegotiate the terms of your debt. Furthermore, we'll write them a Wisconsin lien release form for them to sign following successful renegotiation, thus removing your lien from public records. You can then work easily to repay the debt while retaining ownership of your property.
What Is a Lien?
A lien is a claim or legal rights against a borrower's property or assets used as collateral if they fail to repay the loan. A creditor or court ruling can establish a lien publicly recorded in the county or jurisdiction where the property is located.
An example of a lien is a financial institution holding a vehicle title until the car loan is fully paid. If the borrower fails to repay the loan fully, the bank can seize the car and sell it to offset the money borrowed. Liens are meant to offer creditors security in case a debtor defaults on their loan or terms of the contract.
Granted, the property or car owner can't sell the asset subject to a lien without the consent of a lienholder. Liens can be voluntary or consensual, and there are two broad classes of consensual lines. They include:
- Purchase-money security interest liens - This may be a first mortgage lien on a house, a car loan, or circumstances in which the seller finances the purchase of an asset, such as furniture, through a credit agreement
- Non-purchase-money security interest liens – An example is a second mortgage on real estate or money borrowed to pay operating expenses with previously owned office equipment offered as collateral
If unpaid, consensual liens can tarnish one's credit score. On the other hand, a creditor/claimant can take legal action for nonpayment, which doesn't require the consent of a debtor. In such a case, the lien is involuntary or statutory and may ruin your credit status if the terms aren't met.
Examples of statutory liens include:
- IRS tax liens
- Mechanic's liens
- Artisan's liens
- Warehouseman's liens
What Are the Types of Liens in Wisconsin?
Private individuals or money lenders, government agencies, financial institutions, and small businesses can create liens in Wisconsin. That means there are various types of liens. They include:
|Bank Lien||A bank lien is often created when someone takes out a bank loan to purchase property, such as a house or car. The loan will be used to finance the purchase, and the financial institution will be granted a lien on the property. If the debtor fails to repay the loan, the bank will activate the lien, seize the property, and sell it to cover the borrowed amount.|
|Mechanic's lien||A mechanic's or construction lien is often connected to real property. Suppose a contractor offers home improvement or maintenance services, and the homeowner fails to pay for the services. In that case, the contractor has the right to go to court and obtain a court order allowing them to auction off some of the debtor's assets to cover the payment.|
|Judgment Lien||The courts often place a judgment lien following a lawsuit against a debtor. A judgment lien enables a defendant to get payment in a defaulted loan case by liquidating the debtor's assets.|
|Real Estate Liens||Real estate liens are placed on mortgages, allowing financial institutions and other mortgage lenders to seize and sell real estate property. When an individual or partner borrows money from a bank to secure a home, the bank will place a lien on the property until the debtor repays the full mortgage loan.|
|Tax Liens||Tax liens are statutory and non-consensual liens where the state grants tax authorities to automatically place liens on properties of delinquent taxpayers and tax evaders. For instance, local authorities usually execute tax liens to recover unpaid property taxes|
How to Remove a Lien in Wisconsin
How to Find Out If Your Property in Wisconsin Has a Lien
Property lien usually arises from contracts between a creditor and borrower. If the repayment terms are not met, the creditor must first file a claim in court to get a judgment lien allowing them to seize and sell the debtor's property to settle the unpaid debt. Filing a lien judgment occurs at the county lands office within the jurisdiction of Wisconsin.
Simply perform a title search to determine whether there's a lien on your property. Your title must be clean before selling or refinancing a real property or vehicle. Hence, you need to remove the lien on your house or fill out a lien release form once you clear your debt.
Still, there are limitations to property liens. Most states exercise homestead exception laws that protect your home and any connected land from lien claims by creditors, even when your assets' worth can't satisfy their claims. Additionally, you can file for bankruptcy under Chapter Seven Bankruptcy rules to remove some or the entire debt you owe a creditor.
Tips for Removing a Lien
Removing a piece of property from a lien in Wisconsin can be complex and daunting. But there are a few options you can consider to remove a lien. They include
- Repay Your Debt - Satisfying your loan is the most straightforward means of removing a lien. After fully repaying your loan balance, you can file a lien release form, indicating that you've fully repaid the loan. Once the creditor signs the form, your property will automatically be removed from the lien.
- Seek Legal Action - You can go to court to remove a property from a lien, especially if it was imposed illegally through fraud, coercion, or bad faith. It's possible to compare the judge to remove the lien, although it's difficult since you have to present clear evidence of misbehavior.
- Declare Chapter Seven Bankruptcy - You can file for Chapter Seven Bankruptcy to remove a portion of the money owed or the entire debt. Nonetheless, these actions only apply to specific liens, such as judicial liens, and are typically enforceable within a limited timeframe.
- Renegotiate with the Creditor - Depending on your relationship with the creditor, you can renegotiate the loan terms and work out a more favorable settlement. You can do that with the help of an arbitrator, or mediator, or arrange for informal negotiations.
- Wait Until the Statute of Limitations Expires - According to the Wisconsin statute of limitations on liens, a judgment lien on a debtor's property is only valid for a period not exceeding 10 years, regardless of whether the property changes hands.
Additionally, the state provides lien claimants a specific time to file lien claims. For instance, a construction lien claim can only be filed within six months of completing repairs. If that period passes, the court will view the lien as null and void and thus unenforceable.
Remove a Lien Hassle-Free With DoNotPay
Why undergo the hassle of dealing with government agencies and creditors by yourself when you can leverage DoNotPay to get the support you need to remove a lien? We'll retrieve information on your lien and send a letter to your creditor requesting renegotiations of the loan terms.
Moreover, we can fill out a Wisconsin lien release form and send it to your creditor for signing following successful renegotiations. That removes your property from the lien, giving you peace of mind and ensuring you remain the sole owner of your property and assets.
The following is the simple 3-step procedure to remove a lien with DoNotPay:
- Search for "remove my lien" on DoNotPay.
- Start our Remove My Lien product.
- Answer some questions about your specific lien, and let us help you craft a letter to your creditor to resolve the issue.
Do you have a lien on your real-estate or dealing with IRS tax liens because of failure to pay state property taxes? DoNotPay can help you remove the lien and protect your property from seizure. Sign up for our services today, and we'll be glad to help.
What Else Can DoNotPay Do?
In addition to getting a lien release in Wisconsin, DoNotPay can help you with other problems such as:
- Suing anyone in small claims court
- Skipping customer service phone queues
- Closing bank accounts you no longer use
So what are you waiting for? Join DoNotPay and start reaping the benefits.