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 possibly even pay off your child support arrears in full.
What is the benefit of using the equity in my home?
- The interest is typically much lower than the interest charged on other types of loans.
- The interest may be considerably lower than the 10% per year that is accruing on your unpaid child support debt.
- Unlike the interest you pay for child support, the interest paid on a refinance may be tax deductible! (See your tax preparer to see if you qualify.)
What are the advantages to 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 driver's license
- Prevent suspension of your professional license
- Prevent intercept of your tax refunds
- Prevent suspension of your passport
- Prevent a levy against your bank 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
How to Resolve a Demand
The following contact information is for Title Companies seeking to address lien issues.
Escrow / Title DCSS Contact
Fax: (925) 335-3626
8:00 a.m. - 5:00 p.m. (except legal holidays)
Submit a demand request and a copy of the abstract or lien by
fax to (925) 335-3626, ATTENTION: Demand Desk.
The written demand request must be submitted using your company letterhead with your telephone and fax numbers. You must include the following information:
- Your client's full name
- Social Security Number
- Date of Birth
- Property Address
- Attach a copy of the Abstract of Support Judgment or Lien
- Attach a copy of the borrower's Authorization to Release Information form
DCSS recommends that you submit the demand with information (Social Security Number, date of birth etc.) you received directly from your client. DCSS will perform research using the information you provide to verify the facts of any abstract or lien and then report back to you. Incomplete information may result in your request being delayed.
Please make all checks payable to “California State Disbursement Unit”. For proper identification, your client's full name and DCSS file number listed on the check.
State Disbursement Unit
P.O. Box 989067
West Sacramento, CA 95798-9067
No credit will be given until payment is processed by the SDU.
The title company will need to record the documents with the appropriate Recorder’s Office
Frequently Asked Questions