Selling a House with a Lien: What It Means and How You Can Sell
Jun 25, 2021 | Hometown Development
Selling a house with a lien isn’t easy, but it can be done. However, it can be quite complicated if you’ve never been through such a scenario before. If you’re in that situation, the following information can help you move forward.
What is a Lien And How to Know If You Have One on Your Property?
A lien is an instrument used to claim possession of a property which belongs to someone else until a debt is paid to the person claiming the lien. For instance, a builder may place a lien on a property until the property owner pays for the work that has been done to build a home. There are three kinds of liens:
· Mechanical – placed by a builder or other trade for work done on or to your property
· Tax – placed by the IRS or state for taxes owed
· Judgment – placed by the court for a debtor who is owed money
It’s easy to find out if you have a lien on your property. You may not be aware of any lien, but you can check with the county clerk, assessor, or recorder. Most of the time, you can do this online at their website and enter the address of the property.
How to Resolve a Lien
If you find a lien on your property, don’t panic. First, make sure it hasn’t been paid. Sometimes the debt may be paid, but the lien won’t automatically drop off. The lien-holder must request to have it removed, and they may have failed to do so. If this is the case, you can contact the lien-holder and ask to have it taken off your property.
If you still owe the debt attached to the lien, you can pay the debt and request it to be removed. This can take some time for it to show up on the records, depending on how quickly the lien-holder processes your payment and takes the required steps.
How to Sell with a Lien
In some cases, you may not be in a place financially to pay off the lien and have it removed. You may think you’re stuck in a bad situation. However, there is hope. You can sell your property with a lien attached as long as the buyer is willing to pay off the lien at closing or the proceeds of the sale satisfy the lien before you receive your portion.
Many buyers don’t like the thought of buying a property with a lien attached, but you can find cash buyers who won’t hesitate. Talk to Hometown Development for guidance on selling your home with a lien and find out how they can help.