What is a Lien on a House?
A lien is usually a public record that is filed with a county records office for an actual property. Liens, particularly on real estate, are a frequent method used by creditors to collect what they are owed.
Selling A House With a Lien On It
Are you thinking about moving, but you have a lien on your house and you’re not sure what to do? Well, we have good news: a house can in fact be sold “as is” when there is a lien or judgement against the property or seller. We’ve walked thousands of homeowners through this whole process, from educating them on what a lien on a house is, to the end goal of selling a property with liens, so we know from experience. Every title problem is solvable – all you need is a little imagination and a lot of practice. Even if the debt actually exceeds the property value you can still sell a house with a lien on it.
First, start with an expert who can contact the lien holder to negotiate for a partial or full release of the lien. Judgements from creditors are rarely set in stone: smart lien holders will always take something rather than nothing – you just need to make sure you know your rights and that you don’t give creditors more information than they need.
You don’t even have to pay these settlements before closing! Liens against houses can be paid in multiple ways. Traditionally, a seller will pay these debts at closing where the debts can be deducted from the proceeds of the sale. This means that you likely won’t have to pay any upfront costs; if you find the right title experts you can even negotiate with your creditors to secure a full or partial release of the lien, even when settling the liens for pennies on the dollar.
If you’ve decided that you’re ready to sell quickly this should be your game plan in order to sell a house with a lien on it:
- Evaluate the liens. Determine what types of liens and judgments are against you or the property you need to sell. The procedure for each lien is different, and some types of liens aren’t up for negotiation, but many can be settled for little or no money at all.
- Locate a qualified buyer. It’s no small task to find someone interested in buying a house with a lien against it. Many buyers and realtors see liens and judgments as major problems– they will usually make you pay everything off in full. Also, if they run into a difficult creditor they may just give up, and leave you high and dry. Find someone who not only understands your need for selling a house as is, but also knows how to secure those lien releases and negotiate reduced settlements.
- Allow an expert to work for you. It’s important to allow an experienced investor or Title Company to guide you on what to say to your creditors when settling liens. Sometimes it’s best not to tell the lienholder that you need the release to sell a house because then they’ll know they have the upperhand. Other times you do want the creditor to know the release is going towards a sale because they will wait for the settlement payment – knowing it will come from closing proceeds. There is a lot to know, so it’s critical that you find the right person to walk you through this process. Selling a house with a lien on it can be messy, but you don’t have to go it alone.
“Can you sell a property with a lien on it by yourself?”
Technically you can, but why not call on the experts that have first-hand experience resolving the very problem you’re facing? Creditors know that most people don’t understand their rights, but if you have an expert on your side who understands the ins and outs of what a lien on a house is and selling it with liens they are much more likely to negotiate.
For a quick sale of home, consider working with Big State Home Buyers: we’ve helped thousands of homeowners sell houses with liens. Whether your debt is with the IRS, a credit card company, the tax authority or even an individual, we have years of experience settling all types of liens so sellers can sell fast. There’s no title problem too big or small – at Big State one call solves all.