Let’s paint a picture: you’re getting ready to sell your property. You’re figuring out all the details so that you can put it on the market and you’re starting to get excited. You have all kinds of ideas for what you’re going to do once the house is sold.
Then you find out you have property liens on your house. You start to worry – can you sell your house with property liens? What is a lien?
Well, no need to worry. We’ll explain all of that to you so you can continue on with the process of selling your house without any fear. All you need to do is keep reading.
What Is a Lien?
A lien is used as collateral against a property so that a person will repay a debt. It is typically a legal claim. Depending on what type of lien you have, it can be attached to real estate property, such as your house, or personal property, such as your furniture.
In general, a lien means that whoever you owe money to has a right to the property the lien is against. When a lien is filed against real estate property, the lien holder has the ability to foreclose on your home.
Mortgage lenders will often do a title search on your house when considering giving you a mortgage. This is to make sure you have no outstanding liens attached to the property. If you do have a lien, they will not lend to you.
Property Liens and Selling Your House
Each case is different, but in most cases, you will not be able to sell a house with a lien attached to it. The property is tied to the lien, and most homebuyers will not be willing to take on that debt.
Even if you can find someone willing to take on that debt, they might expect you to make massive concessions before they will buy the house. It’s most likely more worth it to pay the lien off if you can.
If you want, you can try to get out of the lien. This often involves contesting it, in which case you would want a real estate lawyer. The lien holder will be forced to prove the lien, or, if they are unable to, you will be released from the lien.
Get in Touch
Now that you know what property liens are and the proper protocol, you can go about making sure you have no liens to your name. In the meantime, is there anything else you’d like to know? Do you have any questions or concerns?
If you do, then you should contact us here. There are plenty of questions that you might have that you’ve never had an answer to. All you need to do is fill out the form to get in touch, and we’ll get back to you as soon as possible.
Don’t wait; get your questions answered by reaching out.