It's the same thing renting from an HOA. You don't pay their bullshit fines, they put a lien on your house. You don't pay the lien fast enough for them, they'll repo your house. They're basically a government. HOA's should be unconstitutional.
Most states have a way of collateralizing liens. Make a cash payment to the local court of 115% or so of the amount of the lien and it is now not encumbering your property. It is then up to the lien holder to figure out how to foreclose on the collateral. Which nobody seems to understand. And the timelines to do so are much shorter in this regard. Where I used to live, you got 2 years to do it or it goes away. Doesn’t mean you can’t still file suit over the money; just that you do not have any security interest in property while you do it. Some asshole contractor tried that shit on me. He never figured out how to get the money lol
Edit: forgot to add, after the 2 years is up with no action you get your collateral back
Because the entire point is to make them figure out how to foreclose on the collateral. When they don't do it, you get the money back. If the do, then they'll only recover what the lien was for, not the excess. Courts will make you deposit more than the amount to collateralize. Perhaps to cover court costs in the event you lose the proceeding.
It's the same thing renting from an HOA. You don't pay their bullshit fines, they put a lien on your house. You don't pay the lien fast enough for them, they'll repo your house. They're basically a government. HOA's should be unconstitutional.
Most states have a way of collateralizing liens. Make a cash payment to the local court of 115% or so of the amount of the lien and it is now not encumbering your property. It is then up to the lien holder to figure out how to foreclose on the collateral. Which nobody seems to understand. And the timelines to do so are much shorter in this regard. Where I used to live, you got 2 years to do it or it goes away. Doesn’t mean you can’t still file suit over the money; just that you do not have any security interest in property while you do it. Some asshole contractor tried that shit on me. He never figured out how to get the money lol
Edit: forgot to add, after the 2 years is up with no action you get your collateral back
Why pay more than what the lien is?
Because the entire point is to make them figure out how to foreclose on the collateral. When they don't do it, you get the money back. If the do, then they'll only recover what the lien was for, not the excess. Courts will make you deposit more than the amount to collateralize. Perhaps to cover court costs in the event you lose the proceeding.
I don't know anything about this stuff.