What is a lien and how does it affect me? Can I sell a house with a lien on it? These are common questions from Kansas City area homeowners. A quality, BBB-awarded home investment company like ours will resolve issues to sell a house with a lien. Some homeowners are affected by more than one lien associated with a property.
Tax Liens and More
A lien is a legal claim of debt against a property until the debt is satisfied. On the surface, in most cases, liens prevent the sale of a house. For example, when you obtain a loan from a lender to purchase your house, the lender will file a lien against your property with the county clerk until such time the loan is paid in full. There are other types of liens that can be placed on your house other than your mortgage lender. For example, if your taxes or homeowner association dues are not paid, a lien may be filed on your property as well.
How Does a Lien Affect Me?
A lien on your property will prevent you from selling your house unless you pay what is owed or the proceeds from the sale are used to pay off the debt. If you are looking to sell your house, the first step is to find out what liens exist on the property. Some liens are easy to identify (mortgage, taxes, HOA) but be aware of others such as child support, credit cards, etc. Since all transactions take place through a title company, any and all liens will show up eventually. Without removing the liens, the title company will not grant clear title.
How to Remove a Lien?
Good news! Removing a lien IS possible. However, removing some of them can be a lot more difficult than others. Sovereign Home Buyers specializes in removing those more difficult ones. In a previous article, we describe whether or not a house can be sold with a lien on it and go into more detail regarding how a lien works and how to remove a lien from your property. Additionally, we also have some steps to follow when selling a house with a lien, including:
- Do some research on the property value
- Determine the price of listing with the Lien and fees
- Consider working with a company that deals with as-is properties
If you want more facts about how we help sellers who have liens on their homes, you can give our friendly staff a call.
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