Lien- How It Affects You And Your Credit
You have heard the term lien used often enough to have a general idea of what it is. They are generally heard of when discussing mortgages and the IRS. But others can successfully put a lien on your property if you owe them and they seek a judgment through the court system. A lien is a type of surety for a lender. They want to know that they have some recourse to getting their money back should you default on a loan agreement.

If you have debts and they are left unpaid for too long, a lien can be sought against any real property of value that you own. Liens can and often do be put on a property without the owners knowledge, it is for this reason that you have to do a lien search periodically, especially if you have unpaid unsecured debts. Anyone can get an attorney to file the necessary paperwork to put a lien on you.

There is one thing you should be aware of, and that is that there it is never too late to contact the lien holder to try to reach an amicable agreement to settle the debt in question and thereby having the lien removed.  Many creditors are willing to negotiate, and will sometimes take a loss to get a lump sum payment and get the debt off their books. They actually save money. The time and money it cost to continuously work at debt collections add up and they would just rather get it over and done with.

When you find out about the lien, it is a good idea to call the creditor directly. The older the debt the more likely the creditor will be to settle into negotiations for a debt settlement contract. In some cases you can cut more than 50% of the initial debt. This is a great savings for you and this allows you to concentrate on other debts of less severity.

Liens happen in the world of finance all the time. When you do get dissolution of any form make sure you get everything in detail and in writing. You may need it to get certain marks about the debt and lien removed from your credit report. Keep a copy of all written materials from you to the company and from the company to you. Keep these records for up to 10 years just in case. There are people who fit into a category known as “judgment proof” but if you won property or are buying a property you will not fit into that category and you must take care of the liens personally.