What Happens After a Lien Expires?
Many states impose statutes of limitations on how long a lien can stay on your asset or property. If you haven't cleared the debt and the creditor hasn't taken action, the lien may expire. But ?
Most states have a set time limit on judgment liens. This is thanks to the involuntary nature of these liens. The expiration date provides a limited time from the date when the lien was filed for you and the creditor to resolve the lien. In some states, the creditors can extend the lien multiple times. But in states that don't permit such extension, creditors may have to file a lawsuit for foreclosure before the expiration date. This extends the lien's shelf life to the end of the lawsuit.
If foreclosure/enforcement action isn't initiated within the provided time, the lien becomes unenforceable and no longer offers security to recover the debt. The creditor will have to release their lien if it expires. Failure to do so may potentially attract fees, costs, and damages to the creditor. If you still have a lien on your property after expiration, DoNotPay can help you remove it.
DoNotPay can also address other lien concerns like:
- Is there a lien on my house?
- How to remove a state tax lien from public record
- How to remove lien on the property
- How to sell a car with a lien
- Tax lien on a credit report
What Is a Lien?
A lien is a public notice that attaches to your property or asset, telling everyone that a creditor claims you owe them some money. When someone places a lien on your property, it becomes collateral for the debt. Meaning, the lender has the legal right to sell the property if you fail to meet your contractual obligations on loan.
A lien can be consensual when you voluntarily consent – like when you allow the bank you take a security interest in your home when you obtain a mortgage. Or it can be statutory or judgment when the creditor seeks legal action for nonpayment.
What Are the Types of Liens?
There are many types of liens; some are voluntary, granted by the property owner. Others are involuntary, taken by government agencies, or granted by courts. Here are the most common types:
|Mortgage Liens||A creditor takes a mortgage or home lien whenever it provides a loan against a property. You grant the lien voluntarily when you close on your loan. Failure to fulfill the contract gives the creditor the legal right to seize and sell the property.|
|Car Liens||Car liens are the same as mortgage loans, only that the creditor can repossess the vehicle at any time. Car title loans can also lead to liens filed with your local Department of Local Vehicles.|
|Judgment Liens||If someone wins a lawsuit against you but can't collect immediately, they may file a lien against your property or asset. This lien ensures that the creditor recovers the amount you owe eventually.|
|Bank Liens||A bank lien comes about when you take out a loan from a bank to buy an asset, like a car. The bank gets a lien on the asset and may execute the lien, seize the asset, and sell it in the event you fail to repay the loan.|
|Tax Liens||Sometimes, the IRS and local governments collect unpaid taxes using liens. The bad thing about tax liens is that the authorities may attach the liens to your existing and future properties, collect from bank accounts, or prioritize their debt over other creditors.|
How to Remove a Lien
If your asset or property has a lien against it, you may not be able to sell or dispose of it until you clear up the issues causing the lien. Here's how to remove a lien:
- Satisfy your debt. The simplest way to remove a lien from your asset or property is to pay it. Once you pay the balance in full, you can file a Release a Lien form that shows that the debt has been cleared and will remove the lien from your property.
- Negotiate with the creditor. If you and the creditor are up to it, you can negotiate a fair settlement. Negotiations can be informal or through mediation or arbitration.
- Get a court order. If you obtained the lien through illegal means, fraud, bad faith, coercion, etc., you could request the judge remove it. But you'll need proof.
- File Chapter 7 Bankruptcy: Chapter 7 bankruptcy is available for judicial liens. You can file it to remove the lien from your asset or property if you're eligible.
- Wait for the : Alternatively, you can decide to wait for the statute of limitation to run out. As discussed, the creditor won't be able to enforce payment after expiration.
Remove a Lien With DoNotPay
Satisfying your debt is the most straightforward way to remove a lien. But unless you have the finances to settle your debt fully, it might not be viable. So you may have to try the rest of the options, which can be challenging.
But there's no need to struggle alone. DoNotPay will gather all the information around your lien situation and write to the creditor requesting a negotiation of terms on your behalf. We can also complete a Release of Lien form and send it to the creditor to sign. With our help, you can move past the lien after renegotiation and secure your property.
All you have to do is:
- 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.
DoNotPay Works Across All Companies With the Click of a Button
DoNotPay can help you remove all types of liens from your property. But beyond after expiration, we can also address any concerns and questions surrounding liens. For example, we will help you:
- Fill out a lien release form
- Figure out how to find out if you have a lien against you
- Figure out if there's a lien on your house
What Else Can DoNotPay Do?
DoNotPay does so much more than remove liens from your assets or properties. Use it to tackle:
- Property taxes
- Close bank accounts
- Clean credit report
- Customer service
- Help with bills
- Release of liability
- Small claims court
- Increase credit limit
Sign up today to get started!