Liens 101 for Home Sellers
If you're thinking about selling your home, liens are one of the things you may need to deal with. If there is a lien on your property, it could complicate your ability to sell your home. Knowing what a lien is, how you can get rid of a lien and what you can do to avoid this problem in the future can help you. Here's what you need to know.
For informational purposes only. Always consult with an attorney or certified tax expert before proceeding with any real estate transaction.
What Is a Lien?
A lien is a claim against someone's property. Liens enable creditors to take the proceeds (or a portion of the proceeds) from a home sale, until a debt is paid off. Liens can be put in place by creditors like mortgage lenders and the federal government. Liens are a part of the public record, so if you wanted to know if there was a lien on your house, you could find out just by contacting your county recorder.
What Can You Do To Get Rid of a Lien?
Often, the easiest way to pay off a lien is to pay back the debt. Liens occur because a borrower didn't pay off their creditors, so homeowners who have liens on their house can get rid of this problem by paying back money they owe. If the homeowner can't pay the entire debt, they might be able to settle. This typically involves negotiation with a creditor, and may require help from a lawyer.
Can You Sell Your Home if There is a Lien on Your Home?
Yes, a Del Ray homeowner can sell their property, even if there is a lien on your home. Typically when this happens, the homeowner receives the proceeds from their property minus the amount of the lien. However, if the lien is too large, the home could be confiscated and sold without the homeowner receiving any of the proceeds. This is why it's better to take care of a lien before selling a home.
How Can You Avoid a Lien?
The easiest way to avoid a lien is to not borrow money, and if you do borrow money, pay the money back on time. If you're not able to pay your debts in a timely manner, communicate with your creditors so they know when to expect payment.
Contact a Reputable Real Estate Professional
If there's a lien on your property and you would like to sell, work with a reputable real estate professional. Your real estate agent can help you through the process.
For informational purposes only. Always consult with a certified tax expert before proceeding with any real estate transaction.
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