Which Of The Following Creates A Lien On Real Estate
When it comes to real estate ownership, there are a number of different things that can create a lien on the property. A lien is essentially a legal claim against the property that gives the creditor the right to foreclose on the property in the event of non-payment. Here are some of the most common things that can create a lien on real estate:
Mortgage Loans
The most common type of lien on real estate is the mortgage loan. When you take out a mortgage to purchase a property, the lender places a lien on the property until the loan is paid off. If you don't make your mortgage payments, the lender can foreclose on the property and take possession of it.
Property Taxes
Another common source of liens on real estate is property taxes. When you own a property, you are required to pay property taxes to the local government. If you fail to pay these taxes, the government can place a lien on the property and eventually foreclose on it.
Homeowners Association Fees
If you live in a community with a homeowners association (HOA), you may be required to pay fees to the HOA for things like maintenance and repairs. If you fail to pay these fees, the HOA can place a lien on your property and eventually foreclose on it.
Judgment Liens
If you are sued and a judgment is entered against you, the creditor can place a lien on your property to secure the debt. This is known as a judgment lien. If you fail to pay the debt, the creditor can foreclose on the property.
Mechanic's Liens
If you hire a contractor to perform work on your property and fail to pay for the work, the contractor can place a lien on your property to secure payment. This is known as a mechanic's lien. If you fail to pay the debt, the contractor can foreclose on the property.
Child Support Liens
If you owe child support, the government can place a lien on your property to secure payment. This is known as a child support lien. If you fail to pay the debt, the government can foreclose on the property.
Conclusion
As you can see, there are a number of different things that can create a lien on real estate. It's important to be aware of these liens and make sure you stay current on all payments to avoid foreclosure.