Legal Question in Real Estate Law in California

Re: Lien on my House

It would be impossible to give you a precise answer without seeing the documents. It's sort of like asking "I signed a contract, what are my obligations?"

Nevertheless, here are some general comments that may be helpful:

A 'lien' gives the lien holder a interest in the property subject to the lien, i.e. the property becomes collateral.

Liens are frequently placed upon real property to secure the payment of a loan. The money your parents gave you is probably a loan.

If you make all the payments of principal and interest on the loan when (or before) they are due under the terms of the loan, and are otherwise not in default, the holder of the lien cannot interfere with your peaceable possession and use of the property.

If, however, you default on your payment obligations, the holder(s) of the liens can and often do begin a foreclosure; that is, they take action that may result in a forced sale of the property. If such a sale takes place, the money from the sale would be used to repay the lenders and to pay other liens and expenses, and you would receive the balance, if any, but you would no longer own the property.

In order for a lien on real estate to be enforced, it must ordinarily be in writing and signed by the borrower (you). Most such documents are also notarized and filed with the county recorder. This gives the lender(s) certain additional rights and protections.

Home owners who borrow almost always have to give the lender a lien on the home. In California, it is more usual to use a 'promissory note secured by a deed of trust' but mortgages are also used.

Even if you default on payment, you would have substantial rights to correct the default, including a right to notice and additional time to pay up.

Unless the document you call a 'lien' was well drafted and meets legal requirements, it might be defective or insufficient to give your parents the protection they intended.

In any case, you almost certainly can't be forced out if you make your payments on time. If you are threatened by eviction, foreclosure or other interference with your possession of the home, see a local real estate lawyer with all your documentation.