Home Equity Lines of Credit, Home Equity Loans, and many Home Improvement Loans are recorded as mortgage liens against your property. All liens must be either paid in full or subordinated when refinancing on a property.

In addition to judgement liens, Lis Pendens is not a lien filed as a result of a court judgment, but simply a notice of an impending lawsuit that involves the subject property.

If you are in a situation where you cant pay off your lein or leins, there are lenders who will let you suborinate the leins to the second position. This will enable you to refinance your mortgage with out having to payoff the lein.

Liens may be voluntary ( a mortgage or deed of trust), statutory (property taxes), or involuntary ( a judgement affecting all the property an owner as or aquires during the legal life of the lien).

Statutory and involuntary liens fall into four categories:

• Property tax Liens -- These are placed against a property when the property taxes are not paid on time; they are given precedence over all other claims; if they continue to be delinquent for five years, the property will be sold off to pay the taxes; whenever a property is foreclosed upon, taxes are always the first debts paid;


• Judgement Liens -- These are general liens resulting when a person suing another person wins a judgement from a court for the sums owing and records an abstract of that judgment;


• Mechanics Liens -- These are recorded with the county by contractors, subcontractors, materials suppliers, or workers who wish to be paid for their delinquent bils covering labor or materials on new construction, land improvments, or remodeling projects; and


• Federal or State Liens -- These result from unpaid federal or state taxes, personal and inheritance taxes being the most common

All of the liens against a property ususally show up on the initial title search that is completed by your title company or closing attorney depending on the state you live in.

Always consult your lender or mortgage broker as to what actions need to be taken in regards to a lien. Choosing the wrong action can actually hurt your situation if you are not following expert advice.