A Lien Release refers to the process of removing a lien from a secured property. It can be done by obtaining the approval of the current lienholder achieved by the agreement with the debtor; however, in most cases, you can release your property from the lien burden by fulfilling your financial responsibilities and paying off the debt in full. To prove the satisfaction of the lien, the financial institution or contractor who placed the lien in the first place must complete and sign one of the Lien Release Forms. When the lien is officially released, the property owner is not liable for any more payments to the former creditor and all public records about the lien are deleted.
Different situations demand different documentation to legitimize the Lien Release. If you are looking for printable lien release forms, download them below:
- A Mortgage Lien Release is prepared by the mortgage lender (usually, a financial institution) and given to the borrower to confirm the receipt of the final payment. Once this document is delivered to the borrower, the mortgage is satisfied and paid in full.
- Complete a Partial Release of Lien to reduce the amount of money the property owner owes to the constructor or builder. It is up to the creditor to decide whether to forgive a portion of the sum they are entitled to.
- A Contractor’s (Mechanic’s) Lien Release is the most common document used to verify the lienholder's intention to lift the lien restrictions from the property in question. Whether the lien burdens real estate, motor vehicles, or other valuable items, you can fill out this Release of Lien Form when the debtor has provided the creditor with sufficient money to cover the debt.
- IRS Form 12277, Application for Withdrawal of Federal Tax Lien, is an official document issued by the Internal Revenue Service (IRS) and submitted when the taxpayer requests the government to release the lien from their property. If you fail to pay your taxes, your real estate or car may be burdened by a lien to secure the subsequent payment of taxes. When you resolve the debt, you can send this application to the IRS and they will eliminate the tax lien.
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This is formal document contains the approval of the mortgage lender to release a property owned by a borrower from a lien.
This is a type of form that can be used when an individual has paid their contractor in full for the services they have conducted on their property.
This form may be used as a written statement that is prepared by a lienholder to confirm that the lien amount has been reduced and they agree to claim only a part of the lien.