Selling a House with a Lien On It

Can you sell a house with a lien? This is a common question many homeowners as themselves. The truth of the matter is YES! It’s possible to sell a house with liens. The normal home selling process can be stressful and overwhelming but the situation can be more complicated if the property that you are about to list on the market has a lien on it. Liens affects the title search of the property something that can raise red flags to prospective home buyers.

What is Lien?

A lien is a legal right that a lender or creditor obtains from the court of law to allow them to keep possession of a person’s property until they clear all the unpaid debts. You can get a lien on your property if you fail to pay your taxes, refuse to clear mortgage loan or other utility bills and debts. There are 3 different types of liens that are attached to real estate. They include

  • Mortgage lien
  • Tax lien
  • HOA lien

If your house has a lien on it, you will need to think of quick options that you can use to sell your house. The following are the options that you can explore if you want to sell a house with liens.

  1. Find Out the Type of Lien That Is On Your Property

Since there are many types of liens, you need to confirm with the authorities so as to understand which type of lien that has been imposed on your house. If you can truly recognize the lien holder and you have not cleared their debts, you can engage them for a mutual agreement.

In some instances, the lien holder may agree to lift the lien if you show commitments of clearing the debt. On the other hand, there are others who would prefer to sell the property on your behalf and recoup their money first and send the remainder to you.

  1. Dispute Any Invalid Lien

If by any chance you feel that the lien have been wrongly placed on your house, prepare all your documentations and approach your mortgage lender and seek lien removal. If the lender refuses to co-operate, consider hiring a lawyer to represent you in a court of law. In the event that you are able to prove your case, the court will give a ruling on your favor and order that the lien be released immediately.

  1. Selling Your Home To A Real Estate Investor

If you agree that the lien holder has a right to place lien on your property but you don’t have finances to settle the debt first, the best option is to sell your home to an investor as is. Working with a real estate investor will save you time and money by giving you a cash offer and fast closing process.

The investor will take over the debt burden and deal with the lenders and creditors on your behalf. They use their experience in real estate investment to negotiate with lenders and creditors to temporarily lift the lien so that you can sell your home fast. They will also negotiate for better debt repayment strategies with the lenders once you sell a house with lien to them for a reasonable cash payment.