Selling A House With A Lien…The Best Way
Selling a house is a pain to begin with, but if you’re selling a house with a lien, chances are you have a laundry list piled high of things you need to do before your dream can become a reality. Regardless of your reason for selling property—whether you inherited it from a deceased family member, cannot support owning the house financially, or just want a change—the process is strenuous and requires a lot of attention to detail and energy. All of this is magnified tenfold if you have a lien on your house.
While it may seem daunting, or downright impossible, to navigate this situation in a way that doesn’t leave you completely high and dry at the end of the ordeal, hope is not lost. With the help of knowledgeable and skilled home buying experts like our team at Houston Capital Home Buyers, selling a house with a judgment attached has never been easier.
What Is a Lien?
The word “lien” is recognized with heavily negative connotations, but not many people actually know what the function of a lien really is. In essence, a lien is a public notice figuratively stamped onto your property to tell the world the owner of that property has an unpaid debt to a creditor.
For houses, these judgments are usually filed with the county records office and are put in place to quietly force individuals to pay the money they owe. Typically, a home cannot be sold unless it has a “clear” title, and until the debt is paid off, the title will remain “unclear.”
This means that when the time comes that you want to sell your property, the lien needs to be settled as part of the deal in order for you to finalize a sale.
Can I sell a house with a lien without the help of a professional?
While it is technically possible for individuals or families to negotiate a settlement on their own, the risk involved and the chance for huge monetary loss skyrockets without the trained eyes of professionals.
Some of the risks of foregoing professional guidance include:
- The process of selling a home with unpaid debt is overly complicated and exhausting
- It can be hard to assess the situation objectively, especially when individuals are emotionally invested in their home or the initial reason for the judgment being placed.
- If you need to sell your home quickly, the chances of being taken advantage of climb even higher because you likely won’t have the time or resources on your own to financially protect yourself and your family.
Creditors are well aware of all these life circumstances and know that the average person does not have the know-how or energy to maneuver a fair deal. If given the chance, they will often prey on vulnerable parties who have no professional support.
Whether the lien was placed by the IRS, a credit card company, or another individual, don’t let them win that easily! With Houston Capital Home Buyers on your side, reaching a fair compromise is possible.
Steps for Selling a House with a Lien
Before you begin the process of selling a house with a lien, it’s important to understand the basic steps and actions we’ll collectively take for optimal success.
Step 1: Evaluation of the Lien
Your first step should be to fully understand your situation. Not all liens are the same, and different types require different actions.
While there are a few types of liens that cannot be negotiated at all, the majority can potentially be settled in a way that will cost you very little money when all is said and done. This is not a process you have to face alone.
Our team at Houston Capital Home Buyers has years of experience buying and selling homes with liens, and our educative approach to working for clients can give you the information and confidence you need to make decisions about your home and finances.
Step 2: Finding a Qualified Buyer
There aren’t many special homebuyers floating around who are eager to purchase a house that has judgment against it. Many real estate agents or individual buyers will be interested in your property until they realize there is a lien attached.
This is largely true because many people do not know how to navigate a lien negotiation and would rather not go through the hassle. Even though it’s usually untrue, some folks assume that the debt must be paid in full upfront and run the other direction.
In this type of delicate situation, it’s paramount that you find a buyer who understands your situation and knows how to negotiate a lien release or fair settlement.
Step 3: Don’t Try to Do It Alone
Even if you feel confident in your ability to negotiate, the wealth of information and experience an expert has to offer cannot be matched when it comes to sticky lien situations. Skilled investors can help walk you through the process and make sure you know how to handle your settlement.
The payoff is all in the details, and each situation requires different tactics. Sometimes, it’s beneficial for creditors to know that you are attempting to sell your home and settle the lien, while other times it’s better to withhold information. It’s a lot to figure out alone, and there’s no shame in reaching out for help.
The folks here at Houston Capital Home Buyers place absolutely no judgment on you or your situation. Our only goal is to help you settle your debt, sell your house, and get on with your life.
Everyone gets into tough spots in life, and no one is walking around free of any burden. When those financial burdens take the form of liens and judgments tacked on the door of your beloved home, it can be extremely disheartening to move forward alone.
As top-rated house buyers, we strive to lift up all of our clients and help them stand confidently on their own feet despite a lien against their home. With the right team on your side, you and your family can absolutely sell a house with a lien against it and come out the other side with stability and confidence.
Call Houston Capital today, and let’s get started—together.