Selling a house with a lien is not for the faint of heart. It takes an extreme amount of patience and grit to sell a property with a lien on it. Luckily, there are some tips and tricks that can help you get through this process more quickly. Follow our guide to get the most out of your real estate sale.
Identify the Lien
Get familiar with various types of liens on your property. This will give you a better understanding of the process and make it easier to determine what steps to take next. Among the most common types of liens are:
- Mortgage: This is a lien against the property that ensures repayment of the loan that you took out when you purchased the home. If you are selling your home and still have a mortgage against it, you will need to either pay it off or get permission from the lienholder to sell the house.
- Tax Lien: If you owe taxes on your property, the government can place a lien against your home. They will then be able to sell the lien to a third party who will then have the right to foreclose on the property and gain ownership of it.
- Judgment Lien: A judgment lien is similar to a tax lien in that it is enforced by law. This means that a person or entity has sued you and won the case, and has therefore been awarded a lien against your home. To sell your house with a judgment lien, you will need to satisfy the judgment. This means that you will need to pay back the debt that the person won against you.
Determine the Amount Owed
Next, you need to determine the amount owed. By paying off liens and settling any other debts beforehand, the homeowner can avoid delays or complications that may arise during the closing process, such as disputes over who is responsible for paying off certain debts.
Pay Off the Lien
If the lien is significant, you may need to pay it off in full to sell your house. This will require you to have the funds available or to secure financing. Once the lien has been resolved, you can proceed with selling your house. You will need to hire a real estate agent and list your property on the market.
Get the Property Inspected
Once you know the value of your house, the next step is to get the property inspected to identify any issues or repairs that need to be made. The buyer may want to negotiate a lower price if there are major repairs needed. Therefore, it’s important to do any repairs before you sell a house.
Understand the Buyer’s Perspective
When selling your house, it is important to disclose the lien to potential buyers. This will help prevent any liability and increase transparency in the sale.
When you have the house listed, the listing agent and a good photographer, you are halfway to a quick sale. Now, you just need to wait for potential buyers to come through the door. If you can get 3 solid offers on your house, this will make the sale go much faster. Want to sell your house quickly and hassle-free? Visit Simple House Buyer and get in touch with us