Your guide: Can I Sell a House with a Lien on it?
So, are you finding yourself in a complex situation when it comes to seeing your house? Listen, selling a home can be stressful. So, you can imagine how complicated it can be when trying to sell a house with a lien on it.
If you owe money on your property, you might wonder, “Can I sell a house with a lien on it?” The answer is yes, but the process can be a tricky one. So, if you’ve ever wondered about this or are facing this challenge, you’ve come to the right place. Today we are going to unpack all this and more.
Keep reading to find out more.
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What types of liens are there?
A lien is a right of action or claim made against property that is typically pledged as security to pay off debts. The asset covered by the lien could be seized by the creditor. Liens might be bank-, realestate-e, or tax-related.
Can I Sell a House with a Lien on it?
It is possible to sell a house that has a lien on it, but you will have to pay the lien off during the sale. The sum owed is usually paid with the sale proceeds. You will be responsible for paying any shortfall out of pocket if the sale price is insufficient to pay off the lien.
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Steps to Selling a House with a Lien
Conduct a Title Search
A title search is the first step in selling a house with a lien. This search will reveal any existing liens on the property. Knowing what liens are present helps you understand what needs to be paid off before the sale can go through.
Consult an Experienced Real Estate Attorney
It might be difficult to navigate a house sale when there is a debt. A knowledgeable real estate lawyer can offer insightful advice. They can support you in the talks to settle the lien and in understanding your legal responsibilities.
What types of liens are there?
Tax Liens
Tax liens are imposed by the government for unpaid property taxes. These liens take priority over other types of liens. Selling a house with a tax lien requires paying off the owed taxes during the closing process.
Judgment Liens
Decisions made by the court against you result in judgment liens. The proceeds of the sale must be used to satisfy judgment liens held by creditors. This guarantees that the property is transferred to the next owner free of legal claims.
Conclusion
In conclusion, selling a home can be a tough task. When it comes to selling a home with a lien on it, you have a pretty complicated task at hand. You need some solid preparation and legal advice. Not to mention, you’ll need a clear mind to0 because the process will be tough.
Even though there may be liens on your property, you can still sell it successfully if you take the proper steps. You can manage the sale easily and guarantee a clear title for the new owner by taking care of any outstanding issues and ensuring you speak with experts to help for a smooth transition. Happy selling!