If you are selling a house with a lien, there are some things you need to know. Do you know what a lien is and how it works? If so, you might also be curious as the why you want to remove the lien and how to go about removing it. 

What Is a Lien and How Does It Work

The purpose of a lien is to secure repayment of an obligation. When you obtain a loan from a lender to pay for your house, the lender files a lien against your property with the county clerk. If you do not pay back the loan, the lender can take away the house. There are other types of liens besides the finance/mortgage lien that can be placed on your house. For example, if you do not pay your property taxes, a second lien might be filed on your property.

If you want to sell a house that has one or more liens on it, the first step is to find out what liens exist on the property. In many cases, you can perform a search on the county’s website. You can also call the county clerk or go to their office and inquire regarding the existing liens.

Why You Want to Remove the Lien

Even if you are not planning to sell your house, you should start considering what options you have for clearing the lien. If you end up being in a situation where you want to sell the house, or need to sell the house, you will want to make sure that nothing can delay the process. Even after the debts are paid, it can take a few months for the county clerk to remove the lien.

Without removing the liens, the title will be unable to clear. Buyers will want a clear title on the property in order to close.

How to Remove the Lien

If you want to remove the lien from your property, the debts need to be paid off and then the lien holder must cancel the lien. Resolving the liens on your property is important if you want to clear title to sell the house.

Keep in mind, in many cases, the liens can be paid with the proceeds from the house as long as there is equity in the house, and as long as the sale price is sufficient.

Big State Home Buyers helps our clients through this process at little or no out-of-pocket cost to them. But if you are not ready to sell your house, call us at 713-909-4119 and we can answer any questions you have!