ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
21.08.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


What is a Lien?

Author: Ronnica Rothe Author Ranking Silver | Posted: 04-06-2008 | Views: 182 | Rating:  (409) Article Popularity - Bronze (?) Got a Question? Ask.
Sign Up Now!

A lien is a legal claim over property that must be paid before selling the property the lien is on.  Understanding liens is important when you make get a car loan, a mortgage, or do not pay your taxes or mechanic’s bills.

 

Consensual liens are not a problem for you or your credit rating in most cases.  This is what happens when you take out a loan when purchasing a car or house.  It is like the car or house is used as collateral for the loan.  If you do not pay the loan, the company with the lien on your property has the right to take your property from you in order to recover the money you owe them.  This type of lien only becomes a problem if you stop paying your bills, as you will then lose the car or house that you might need to live.

 

There are also involuntary liens which are a problem.  An involuntary lien means that someone has placed a claim on your property because you owe them a significant amount of money.  One kind of involuntary lien is a tax lien.  Once you have a tax lien, it is on your public record permanently.  This can occur when you do not pay your property or income taxes, and can be put on your property by local, state, or federal government.  If you have a federal tax lien, it will stay on your credit report for 15 years, significantly damaging your credit score.

 

Another type of involuntary lien is a mechanic’s lien or construction lien.  This type of lien occurs when you do not pay for your car repair or construction property bills.  In the most extreme cases, the mechanic or contractor could take away your property in order to recover their losses.  The best way to avoid this type of lien is to pay your bills.

Rate this Article: Current: 4 / 5 stars - 1 vote(s).

Article Source: http://www.articlesbase.com/loans-articles/what-is-a-lien-438420.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Ronnica Rothe is a graduate with honors from the University of Oklahoma and a current student at Southeastern Baptist Theological Seminary. She works with Vison Credit Education to help individuals get out of debt and reach their financial goals.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Related Articles

What the Rich Know That You Don’t
By: Alexander | 31/05/2008 | Credit
Becoming intelligent with money requires more than just getting out of debt. It also means making your money work for you instead of you working for it. It means earning interest instead of paying interest. It means buying assets instead of liabilities.

I’ve Graduated…now What?
By: Beneficial Editorial Staff | 13/08/2008 | Credit
Now that you’ve graduated, it’s time to get your financial future on track. Here are some tips to get a good financial start and brighten your financial future.

I’m Married…now What?
By: Beneficial Editorial Staff | 13/08/2008 | Credit
Learn about how you and your new spouse can build a solid financial future together and how Beneficial’s products may be able to help you meet your financial goals.

The Facts of Life
By: Elena Laramie | 20/02/2008 | Finance
FACT: Money has very little to do how much you love someone . . . but it has a lot to do with how much you fight with that person, especially if that's your husband, wife, boyfriend or girlfriend.

Understand credit report's relevance in mortgage
By: Lance Williams | 23/11/2005 | Finance
The importance of credit report and credit score in determining whether a mortgage application will be approved or turned down is explained here.

Tips for Financing or Refinancing Your Car Loan
By: Sandra Wellman | 14/03/2006 | Finance
Tips for getting auto financing or refinancing. What you should do before you shop for a car to get a better rate.

Love That Loan! How to Get the Best Rates
By: Elena Laramie | 05/03/2008 | Finance
Buying a new home or car is exciting stuff. Whether you're going after a condo or a convertible, it's a great feeling finding what you want. The only thing better? Knowing that you're saving money on your loan because you're prepared and your credit report is in tip-top shape.

How Will the New Federal Reserve Bank Interest Rate Cut Affect Most Consumers in About a Year or Two.!??
By: Mike Samadi | 06/04/2008 | Loans
Since the Government is claiming- it is protecting taxpayers. And the Central Bank (Fed. Reserve-in short, “FED”) (Mr. B.) is claiming that the team is doing whatever necessary to keep the economy at a float; they are missing one major point; the “Consumers’ future.”

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Loans Articles

Home Equity Loan - How to Release Your Equity Easy as Pie!
By: Robert | 21/08/2008
How can UK homeowners release their equity safely with being ripped off.

Borrow Vs. Saving: Do You Really Need Another Loan?
By: Andron Fisher | 21/08/2008
Taking out a loan is a great way to spread the cost of an expensive item over time. Without loans we would not be able to afford major purchases such as automobiles, homes and college educations.

Avail Personal Loans to Fulfil Your Wishes
By: Gracy Bonsu | 21/08/2008
Personal loans are the most genuine and most transparent kind of loans that exist in every loan market around the world. Even for people suffering from the bad credit score, there is bad credit personal loans.

Need of an Extensive Research to Find Low Rates Loans
By: Gracy Bonsu | 21/08/2008
Looking for a cheaper personal loan can be quite confusing and time-consuming. For this purpose, there are numerous lending authorities in the UK offering efficient and inexpensive personal loans. Inexpensive personal loans can be looked online by every borrower in the UK.

Get Secured Loans and Enjoy the Life Fully
By: Gracy Bonsu | 21/08/2008
Secured loans are the best option for a person, when he comes across any kind of financial shortcoming. But despite facing the problem of credit crunch, there are still many lenders across the whole United Kingdom who are willing to offer cheap secured loans at a very reasonable rate of interest.

Online Finance Company!
By: Sadhana Dhanyal | 21/08/2008
It is not easy to get a loan approved in a short period of time. Generally, lenders take a considerable amount of time to approve a loan. They take into consideration the credit score of the borrower, his repaying capacity, financial situation among other things while approving a loan.

Instant Loans Company!
By: Sadhana Dhanyal | 21/08/2008
Are you finding it difficult to secure a loan urgently? Don’t know where to look for help? Don’t worry. Find a simple solution in the form of instant loans no faxing. These loans are meant for the short term needs. They are very easy to avail. The process of loan application is very simple.

Payday Loans: Easy and Fast Approved Loans for Immediate Needs
By: Scarlette Riley | 21/08/2008
Payday loans are fast and easy loans. The loan amount is £100-£1500 for the loan term of 2-4 weeks. The interest rate is high and these loans are given to the borrowers who are employed with stable salary and are the legal citizens. Both online and traditional lenders offer these loans.

More from Ronnica Rothe

Rethink Your Spending Habits
By: Ronnica Rothe | 19/08/2008 | Personal Finance
Too many of us struggle with debt because we live above our means. This can be kept up for some time using credit cards and creative finances, but at some point your debt will get the best of you.

Eliminating Debt is not Impossible
By: Ronnica Rothe | 12/08/2008 | Debt Consolidation
Your credit card debt situation may seem impossible to overcome. Yet as you sit at home watching the Olympics, you see athlete after athlete overcome obstacles and topple world records in ways that would never have been thought possible even 20 years ago. While you probably never will win an Olympic medal, with the right strategies and information you can eliminate debt from your life.

How Do I Review My Credit Report?
By: Ronnica Rothe | 07/08/2008 | Credit
If you don’t know what is on your credit report or what your credit score is, you may want to review your credit report. This is especially important if you want to make a large purchase or apply for a new credit card in the near future, but reviewing your credit report on a semi-regular basis will keep you aware of your credit history and let you know if you have become a victim of identity theft. Credit score information can also help you understand what your credit score and report means.

What is a Reverse Mortgage?
By: Ronnica Rothe | 06/08/2008 | Mortgage
If you are lacking funds but have a lot of money tied up in your house, you may be considering a reverse mortgage. In some situations, a reverse mortgage can be a good option. But before taking the plunge and stripping your house of equity, you will want to find out more about this product and its advantages and disadvantages.

How Do I Choose a Credit Counseling Organization?
By: Ronnica Rothe | 01/08/2008 | Credit
There are an increasing amount of people that can benefit from credit counseling as they see their credit tank and their debt skyrocket due to financial decisions and the economy. But how should you go about choosing a credit counseling organization? Here are a few helpful tips.

Establishing Credit Helps Build Financial Stability
By: Ronnica Rothe | 31/07/2008 | Wealth Building
One of the problems many people find when they first go to make a large purchase such as a car or house is that they do not have the necessary credit in order to receive financing. This does not mean that they have bad credit, but they have not proven that they are responsible with credit to any potential lenders.

Don't be Foolish - Sign That Credit Card
By: Ronnica Rothe | 28/07/2008 | Personal Finance
The other day I got in a conversation with a friend about whether or not to sign the back of your credit card. She had heard that is was always best not to sign the back of your credit card as that would give you an out with the credit card company if the card was used fraudulently.

Credit Counseling in Pennsylvania
By: Ronnica Rothe | 25/07/2008 | Debt Consolidation
Much like the rest of the country, Pennsylvania residents are struggling with their credit card debt. As if mounting debt were not enough, gas and food prices have gone up exceeding inflation. This means that more Pennsylvanians are relying on credit cards to make ends me than ever.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below