If a creditor has a lien on an asset, that means he owns a portion of the asset. A lien often serves as security for a debt. Because a lien has to be publicly recorded, you can find out whether there is a lien on an asset by searching the public records.
Types
A creditor may be able to attach a lien to various assets, including real estate, vehicles and other personal property. For example, when you take out a mortgage, the lender places a lien on the real estate property. This gives the mortgage lender the right to seize and sell the property in case you fail to pay the mortgage. Some liens can be attached to your assets without your consent, for example, tax liens and judgment liens.
Authority
When a creditor attaches a lien on an asset, the creditor has to record the lien with the appropriate authority. For example, a creditor has to record a lien against a piece of real estate with the land records office at the county where the property is located. In the case of a lien on a vehicle established by a repair or storage facility that the vehicle owner doesn't pay, the lien has to be registered with the local motor vehicle authority.
Search
To determine whether a certain asset has a lien attached, you have to first determine the type of asset and contact the appropriate authority that handles liens on such assets. The authority can provide you with information regarding liens on an asset if you have the appropriate information, such as the debtor's legal name and address.
Professional Help
If you can't conduct a lien search on assets yourself, you can hire a professional to do it for you. For example, if you want to buy a piece of real estate, you can get a title insurance company to conduct a title search to find out whether there is any lien on the property's title. Some companies specialize in looking up vehicle history, so you can obtain a report detailing any liens on the vehicle for a fee.
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