How serious is a lien on my home?

Liens are serious business. Not only do liens of all kinds affect your credit score for years and years, but they also have a lasting impact on all aspects of your financial life. Here is the basic lay out of the types of liens:

Tax Liens – These are imposed by the U.S. Government for unpaid taxes of all kinds, not just property taxes. A lien may be placed on your home for unpaid personal or business taxes. The best ways to avoid these are to set up a payment plan with the IRS when the threatening letters begin to show up.

Property & Mechanics Liens – These can be placed upon your home for various reasons such as lawsuit or unpaid contractual invoices.

Tax liens are priority number one. Literally, you must pay on your tax lien before you are allowed to pay anything else. Trust me, the IRS doesn’t mess around. Not only will a tax lien be placed on your home but also they can garnish your wages and essentially make your life miserable.

All liens - tax, property and mechanics make it impossible to sell or refinance your home. Liens are a surefire way to stop the sale or refinance of a home dead in its tracks. No matter the type of lien, it must be paid in full before it may be sold or refinanced.