Lien Sale
Candlefocus EditorWhen a debt is not paid, the creditor may file a lien, or a public notice of debt and seizure, against the debtor’s assets. Lien sales are often conducted by a county treasurer, who oversees a public sale of the asset or assets. Often, these assets are real estate, and the sale of the assets by a local government agency can recoup some of the unpaid debt for the creditor.
Once the assets are sold at auction, the successful bidder becomes the new owner of the asset and can either hold the asset or resell it. When a private party buys the assets, the lien buyer usually charges an interest rate on the debt that was due. Typically, however, there are limits to the amount of interest a lien buyer can charge, and the lien buyer must also observe local laws, statutes, and regulations related to auctions.
In addition, when the lien is attached to another party’s property, such as real estate, public notices might be issued in a local newspaper or posted online by the county treasurer. The notice, which identifies the parties involved and outlines all related information, also details how and when the sale will take place.
In conclusion, lien sales are a method of satisfying an unpaid debt. A local government agency oversees the asset auction, after which, the successful bidder becomes the new owner of the asset or assets. Furthermore, the lien buyer typically charges interest on the unpaid debt, though there are limits to the amount of interest that can be charged. Lastly, the local agency overseeing the sale might post notifications in a local newspaper or online regarding all related information.