What is the difference between a lien and a judgment?

The easy definition is that a judgment is an official decision rendered by the court with regard to a civil matter. A judgment lien, sometimes referred to as an “abstract of judgment,” is an involuntary lien that is filed to give constructive notice and is to attach to the Judgment Debtor’s property and/or assets.

What is a tax lien and how does it work?

A tax lien prohibits a property from being sold or refinanced until the taxes are paid and the lien is removed. When the lien is issued, the county or town that is owed property taxes creates a tax-lien certificate that includes the amount of the taxes owed, plus interest and penalties.

Why do I have a tax lien on my credit report?

In the past, your IRS debt may have appeared on your credit report if the IRS filed a Notice of Federal Tax Lien against you. When the IRS files a Notice of Federal Tax Lien against you, it means that the agency has a legal claim against all your current and future property, such as your home or car.

Can you buy a home with a tax lien?

When a property has a tax lien, it cannot be sold or refinanced until the taxes are paid and the lien is discharged. As an investor, you can purchase a tax lien from the county for properties with unpaid taxes. Depending on the actions of the homeowners, the property may eventually become an investment property.

What is an example of a specific lien?

Examples of specific liens include: -Property tax lien when taxes are not paid. -Mortgage lien when a mortgage is used in financing. Both ad valorem tax liens and special assessment tax liens have priority over all other types of liens (but ad valorem tax liens have priority over special assessment tax liens.)

What does it mean to have a federal tax lien?

A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets. A federal tax lien exists after: The IRS:

How does a judgment lien work on a property?

Judgment Liens. The creditor records the lien in the county where you or the property resides and attaches the judgment as proof of the creditor’s entitlement to the lien. For more information about how creditors collect on debts, visit our area on Debt Collection: Repossessions, Wage Garnishments, Property Levies, and More.

What’s the difference between a lien and a levy?

A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt.

Can a tax lien be placed on an empty property?

County level tax liens in the United States. In the United States, a tax lien may be placed on a house or any other real property on which property tax is due (such as an empty tract of land, a boat dock, or even a parking place).