Types

• Property liens can arise under a variety of circumstances. The most common types of liens are mortgage liens arising under mortgage loans, mechanic's or contractor's liens arising from unpaid contractors who have worked on or supplied materials to the house, judgment liens that result from unpaid monetary obligations of the homeowner, property tax liens that result from unpaid property taxes, and IRS tax liens that result from unpaid federal income taxes of the homeowner.
  
  

Attachment

• A lien always attaches to a specific piece of property, and the lien remains attached to the property until the lien creditor has been paid off. This means that once a lien attaches to your home, the lien remains attached to your home until the lien holder agrees to release the lien from your home. Liens remain attached to property even if you transfer title to your house.
  
  

Payoff

• Most potential home purchasers will not accept title to a home unless the property is free and clear from all liens. This means that the lien must be paid off and removed from the property before the sales transaction will close. Typically, liens will be paid off at or before the closing. Anybody can pay off the property lien, so either the purchaser or the seller can come up with the money necessary to remove the lien from the property.
  
  

Partial Payoff

• The lien creditor has the right to allow removal of the lien even if the creditor has not been fully paid off. This means the purchaser or seller of the property may be able to negotiate a partial payoff of the amount due the lien creditor in exchange for the lien creditor removing the lien from the property. Removal of the property lien does not necessarily fully satisfy the underlying obligation that provides the basis for the lien. Creditors may be enticed to remove property liens in exchange for partial payment and the right to pursue the remaining balance owed by other legal means, such as wage garnishment or bank account seizure.