Escrow companies play a critical role in the collection of child support. Child Support agencies throughout California are required to file liens and abstracts of judgment in all cases, where there is an active child support obligation. When the support obligor purchases, sells or refinances real estate, these abstracts and liens ensure the obligor's support obligation takes precedence, and their children benefit in some manner from the transaction.
How can I use my home to pay off my child support arrears?
Using the equity in your home, you may be able to either refinance your mortgage or obtain a Home Equity Loan (HEL) or a Home Equity Line of Credit (HELOC) to reduce your child support arrears or possible even pay off your child support arrears in full.
What are the advantages of paying off my child support arrears?
Eliminate interest, which is accruing on child support arrears at the rate of 10% per year
Improve your credit rating
Prevent suspension of your professional license
Prevent suspension of your driver's license
Prevent intercepts of your tax refunds
Prevent suspension of your passport
Prevent a levy against your back account.
What are the advantages to reducing my child support arrears?
Improve your credit history by reducing your total indebtedness
Minimize the amount of interest paid
If you have any further questions about liens or demand companies please call 866-901-3212.