What is an Unconditional Lien Release?

Remove My Lien What is an Unconditional Lien Release?

What is an Unconditional Lien Release?

Your house, car, or other assets could be used as collateral for a debt you owe. Whether it's the IRS is unpaid taxes, a contractor in unpaid services, or past due child support. Liens can rob you of peace of mind and good business opportunities, such as selling off your home. You shouldn't take all that lying down, not when an unconditional lien release is close.

The process might be scary. Finding out if you have a lien against you, strict forms to fill, generally removing a lien, and the challenges pile up. It's time to crumble this pile through our faster, more convenient, automated, less frustrating way.

What Is Unconditional Lien Release?

Before you know what unconditional final release of lien is, it's best you first know what a lien is. A lien is a legal document or claim against a house, car, or any other property that gives a creditor/lender/lienor a legal interest in that property.

Imagine that you hire a contractor to remodel parts of your house. You sign a contract amounting to $10,000. The contractor also supplies you with materials worth $8,000. Unfortunately, due to some unavoidable circumstances, you cannot pay the contractor.

The contractor visits your home county's county recorder or court clerk and files a mechanic's lien. This public records document displays that you owe the contractor, and he has a legal interest on your house for the debt you owe them.

An unconditional release of a lien is a legal document showing there are no restrictions or any reason not to release a lien.

If you are a contractor or debtor, always ensure you give an unconditional lien release when all the work is complete, and you have received the money in full. You issue this lien in the final documents verifying you have completed the work, have received full payment, and waiver any future rights to file liens on that project.

So, back to your contractor and the mechanic's lien. The project is complete, and you pay the full amount. The contractor will unconditionally release you from the mechanic's lien after signing the release lien documents.

How to Check If You Have an Unconditional Lien Release

The law mandates that liens be made public records. If you want to buy an asset, you can confirm if it has a lien attached to it. If an investor or a potential homeowner wants to buy your house, they can check the debt status.

You can find all this information regarding liens at the court clerk, county recorder, county clerk, or assessor's offices in which that property is located. Additionally, there are certain types of liens handled by government agencies.

For instance, if you wish to check liens in California, you can contact the IRS for federal tax liens and the Board of Equalization ((916) 445-1122), Employment Development Department ((916) 464-2669), and Franchise Tax Board ((916) 845-4350 or (800) 852-5711) for California state tax.

To check for a lien on a vehicle, you can check the California DMV database via the Electronic Lien and Title program portal.

To check for a lien on your property in California, visit your county clerk's office (as per California Law). For instance, you can check Stanislaus county's online county recorder's portal for a property lien.

Different states and government agencies have different sources of lien information. Fortunately, lien information should be a public record, making it easy for anyone to access it.

If you lack the skills to dig for that info, visit your state's court clerk, county recorder, county clerk, or assessor's offices. They'll advise you on the way forward from there. Most of these agencies have online portals you can visit from your web browser.

Reasons For a Lien on Your Property

An unconditional release of a lien is a relief to you and your property. You can go ahead and sell or refinance your home or sell your car if you wish. But, how did you get a lien to begin with?

  1. You Are Falling Behind on Loans Payments

Mortgages and auto loans are the most common loans you could have. If you delay repaying these loans, the lender might repossess the property and auction it off to recover your debt.

  1. You Have Backed Taxes

If you aren't paying your taxes, the IRS will come calling. If you can't pay any backed taxes, it will file for a lien on your property and sell your property to recover these taxes. Fortunately, according to Experian, tax liens don't appear on credit reports.

  1. You Failed to Pay Your Contractor

If you fail to pay a contractor for a project or inventory supplied, the contractor can file a lien on your property.

  1. You Lost a Lawsuit But Failed to Pay the Winner

After a court ruling, the judge can grant the winner compensation from you, but you fail to pay. The winner has the right to file a lien on your property to cover their compensation.

How to Fight a Lien on Your Property

Now you know the possible reasons someone could file a lien on your property. Now it's time to know how to fight the lien and remove it from your property.

Negotiate With the CreditorCreditors aren't that stiff as not to understand the situations that have forced your inability to settle your debts. Furthermore, creditors incur costs to repossess your property for resale. You can negotiate for an extended payment period, a partial lien release, or a debt reduction plan that works best for both parties.
Contest in a Court of LawThere are cases where a creditor files a lien through illegal means, such as coercion, fraud, or duress. While the process for contesting such a lien is challenging, it might save your property from repossession.
Wait For the Statutory of Limitations to ExpireDifferent liens have varying statutes of limitations. The duration also varies by state. If this duration expires, the lien expires. However, keep in mind some liens can last long; for instance, a judgment lien can last up to 20 years in Indiana, while the same lasts for ten years in Hawaii. Also, some states can extend the lien duration.
Progressive PaymentThere are two types of unconditional lien release. Unconditional final lien release allows for unobstructed lien release after all work is done. Another type is unconditional lien release on progress payment, which allows lien release based on the work progress. This reduces the risk of a lien by discharging the creditor's rights through specific dates without any conditions.

Handle Unconditional Lien Release With the Help of DoNotPay

You might be worried about your lien situation and property, especially without an unconditional lien release on site. Fortunately, DoNotPay can consolidate your info and ensure your lien condition changes for the better, and you keep your property.

You can achieve all that in three easy steps:

  1. Search for remove my lien on DoNotPay.

     

  2. Start our Remove My Lien product.

     

  3. Answer some questions about your specific lien and let us help you craft a letter to your creditor to resolve the issue.

     

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What If I Have More Issues?

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