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.