What is a property lien and how will it effect my credit?

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What is a property lien and how will it effect my credit?

I filed bankruptcy last year, including my arrears to my HOA. My attorney at the time told me to stay in the condo until the bank forecloses on me. In the meantime my HOA has sent my arrears for the last year to collections and is threatening to put a lien on the property.

Asked on July 15, 2011 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

A property lien is a document recorded with the county recorder's office showing an obligation owed by a property owner or a judgment against him or her. If the lien is simply an obligation that supposedly has not been paid, but there is no judgment for the lien, the recording of it on a piece of property should not affect your credit.

For example, mortgages are a form of a lien and are recorded on property as security for a loan. If the loan is current, the mortgage that is recorded would have no effect on one's credit in a negative manner.

The Homeowner's Association wants payment from you potentially for monthly dues for your condominium that have not been paid. Usually under the recorded "covenants, conditions and restrictions" also known as CC&R's where your property is located, the Homeowner's Association can lien your property before a lawsuit is filed and before judgment as ameans of security for payment of the money owed.


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