What does it mean if your have a lien on your mortgage?

by Hannah Sosinski 06/03/2024

What is a mortgage lien featured image

Whether you’re a new homeowner or you’ve owned your property for years, there’s an understanding around the importance of paying off your mortgage loan. Mortgage liens as a result of nonpayment can put your home at risk, so understanding what they are and how to remove them is crucial 

What are liens in mortgage?

In real estate, a lien is an asset bound by contract which acts as collateral for a company or individual in the case an agreement isn’t fulfilled. 

When you sign a contract for a mortgage loan, many lenders use the home being purchased for collateral. If the borrower defaults on the loan, the home may be confiscated by the mortgage company. A lien mortgage applies directly through your lender, whereas tax liens are involuntary through the state.  

How to remove a lien on a property?

To avoid foreclosure, it’s vital to handle liens on a property. One of the first ways to satisfy a mortgage lien is by paying off the debt owed on the home. You can work with your lender to form a payment plan or negotiate for a partial payment offer. 

If the lien on your home is of no fault of your own, as a property owner, you can take your case to court to legally have the lien removed. This may be most ideal if you’ve already paid off the debt owed on the home and there was a payment mix up or if your lender used underhanded means. 

If you have a lien on your home and need help paying money owed on the property, consider speaking with your lender to form the best plan of action to have it removed.

About the Author

Hannah Sosinski

 I started my career in the real estate industry at the age of sixteen and instantly fell in love.

I worked alongside one of the top producing agents in the country as their administrative assistant for nearly nine years before I took the leap to begin my own journey in the real estate industry.
Working alongside an agent who sells over three hundred houses a year educated me strongly on the Pittsburgh and greater Pittsburgh housing market. While working alongside this agent, I was lucky enough to be involved in several different types of real estate transactions and learned to properly determine home values, many aspects of negotiations and have learned how to close challenging deals while also handling a large amount of deals at the same time.

I have also spent the past seven years working as a property manager throughout Allegheny, Washington and Fayette County. I have managed everything from Section 8 to Luxury units.

Exploring the options of the real estate industry can be overwhelming. While working with me you’re able to sit back and relax as I have worked with many investors, home sellers and buyers and can help guide through the sale or purchase of your home and make it as easy on you as possible.

Whether you’re a first time home owner, downsizing, sizing up, looking to make your first/second or third investment, selling your home, etc. I can use my years of education to help guide you through the purchase or sale of the largest investment of your life.

I look forward to chatting about real estate with you!