If you are looking to sell a house but you found it has a Lien on it, then this blog post is for you.
There are a few things you can do in order to sell your house with a Lien. Most people do not know what a Lien is. This article will help explain lien basics and how the process of selling your house with a Lien works. We’ll also go over some other options that can help sell your house faster and without the hassle of liens.
What a Lien is?
A lien is a claim or legal right against assets that are typically used as collateral to satisfy a debt. A lien could be established by a creditor or a legal judgement. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien. There are many types of liens that are used to secure assets
A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor’s real or personal property if the debtor fails to fulfill his or her contractual obligations.
Who can put a lien on my house?
A lien can be voluntarily placed on any asset by anyone. A lien is typically taken out to ensure that the lien holder either receives payment for services rendered or repayment of a debt owed. Let’s go over some of the most common lien holders:
1) Mortgage lenders – If you have a mortgage, the lender most likely has a lien against your house (or even multiple liens); most banks require borrowers to secure their loans with collateral like real estate.
2) Contractors – If someone has worked on repairing or building additions onto your home then they can place a lien against it.
3) Government lien – These liens are typically placed by government entities to preserve property until taxes or other fees are paid. For example, a lien may be placed on property to ensure payment of property taxes or utility bills. Property tax lien holders have first priority over all other lien claimants when it comes time to sell the house.
Can you sell a house with a Lien on it?
Short answer is Yes. Selling a home with lien is not the ideal way to sell it, but it can be done. Depending on the Lien you may need to hire an attorney and work with lien holder in order for this process go smoothly. The lien holder will likely want you to pay your lien off(if not paid already) which is completely understandable.
Selling a house while there are lien against it is possible; however, you will have fewer options of who to sell your house too. For example; if you owe taxes on your property then the government lien holders (government entity that placed lien on your house) will get first priority above all other liens against your home like mortgage lien or construction loans. If the amount of these Liens are bigger than what you house is worth you may need to bring cash to the closing table in order to sell your house, this is when it gets complicated and may become really expensive.
3 Alternatives for You to Sell Your Home With a Lien on It
1 – Pay Off your Debt
The most obvious choice is to figure out how much lien you owe and pay it off. After lien is paid the lien holder must then release lien on your house, this process can take time (weeks) to months depending on lien holder (most of the time it’s the bank). However this option could be expensive if your debt isn’t small enough to pay off fast enough.
This is something you definitely will need to take care of before you even think about listing your property. You have to make sure the Lien is not longer attached to the property, and then you will be able to list it and wait until you get the right offer.
If this options is too expensive and time consuming for you, then we have a couple more options for you, so keep reading.
2 – Use the Proceeds From the Sell to Pay Off your Debt
This option is similar to the first one, but instead of paying your lien holder directly you are going to keep the monies from selling your home and use it towards lien payment. This can be difficult if lien is big enough that you don’t have enough equity in your house to pay off lien at closing. However, if lien is small enough that you have some equity then this might be a good choice for you.
3 – Sell directly to us… an Investor
If none of the above options work for you, then we might be able to help. You can avoid all these headaches entirely by doing things right from the beginning. At Go To House Buyer we buy houses with lien in all states. This is usually the best alternative when lien amount can’t be paid off fast enough.
We’ve developed a proprietary process that enables us to buy your house with a Lien on it in your time frame, it can go from days to weeks. Totally stress free for you, you don’t have to pay anything to sell a house with a Lien on it to us. We will handle all the process for lien release, lien payoff and all the complexities that buying a house with lien on it entails.
If you need to sell your home fast, please feel free to contact us at any time, Go To House Buyer is here for you! We will be more than happy to provide you with a fair cash offer in as little as 30 min. Our goal is to simplify your life during this challenging time of selling your house by making our process simple and stress-free.
Just fill in the form below, we will contact you right away and provide you within Multiple Options for your specific situation, at no cost and no obligation to you.
Go To House Buyer does not provide legal, tax, or investment advice. This material is for informational purposes only. It should not be considered as investment advice and may not be used as a basis for any financial decisions. Please seek advice from a professional in these areas before making a decision.