When you want to sell your home fast (and who doesn’t?), the last thing you need is an issue to be uncovered by a title search that throws a wrench into the process, slowing the whole thing down or worse, bringing the closing to a grinding halt. A property lien on your home can be just such a glitch. It can scare buyers away or result in a low-ball offer from someone willing to take the risk but not willing to pay the price.
An active lien on your house doesn’t have to ruin your sale, though. There are things you can do to avoid repelling potential buyers and still get the deal done.
How to Sell a House with a Lien
Step 1: Determine what you can do about the debt
A lien on your home means someone out there has gone to court to place a claim against your property due to an unpaid fee of some kind. Liens can be on a mortgage if you are behind on payments to your lender. They can be placed by the IRS because of unpaid taxes. There are also HOA liens if you haven’t paid your home owner’s association dues, or liens from contractors who have done work on your home and are still waiting for payment.
To sell your house with a lien, the first thing you need to do is figure out what type of lien you are dealing with and why it’s been placed. To avoid any problems with the sale, it’s best to do this before your house hits the market. So, before the title company digs up any dirt, do some digging yourself.
Step 2: If possible, pay what you owe
Once you’ve discovered the source of your debt, if at all possible, pay what you owe to have the lien released. If you can’t afford to pay off the whole debt, you still have a few options:
- You can see if a clause can be added in the closing statement that allows you to use all or part of the home sale proceeds to pay what you owe or have the debt deducted from the sale price. This will lessen the risk for a buyer and make them more likely to go ahead with the sale.
- If the debt is so large that the home sale doesn’t cover it, you can try to negotiate with the party holding the lien to see if they will accept partial payment and set up a payment plan.
- It’s highly unlikely, but you can also try to see if the buyer is willing to take on the lien with the purchase. Even if the buyer is willing, though, your selling price will be drastically affected.
Step 3: If you can’t pay your debt, ask an expert for help
If none of the payment options will work for you, consider selling your house to a reputable real estate investor who will buy your home for cash, liens and all!
Renewed Homes has the reputation and leverage to negotiate with creditors and deal with liens so you don’t have to — you can depend on our team to find a creative solution so you can sell a house with a lien, without any of the headaches.
Yes, You Can Sell a House with a Lien!
Let’s face it, no one wants selling their home to be a long and dragged-out process. You want things to go as quickly and smoothly as possible, and even with a lien, Renewed Homes can help make that happen!
Don’t let a lien hold things up or hold you back. If you need to sell your house with a lien, contact the expert team at Renewed Homes today. Call 269-362-0931 to learn more.
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