Selling your home is already complicated. The complication of the process increases when the house you’re selling has a lien on it. Irby can make selling homes with liens simpler by providing you with the information you need to have a successful real estate experience.
How do you define liens on houses?
Liens are a way for creditors to collect the debt that is owed to them from the homeowner. These are generally public record and are filed with the county records office for properties.
What you need to know about selling with a lien
You still have plenty of options even if you’re moving from a house that has a lien. If the property or seller has a lien or judgment against it then the house can be sold As-Is. We walk numerous homeowners through the process every day by educating them about liens to sell their property. From personal experience, there is no title problem that can’t be resolved. Just by using your imagination and loads of practice, there is nothing you will not be able to do. Debt that surpasses that property value is no factor, your house can still be sold with the lien.
Before doing anything else, you will need to contact a person with expertise to negotiate with a lienholder on your behalf for partial or full release of the lien involved. Judgments from creditors can be more flexible than you think. An intelligent, savvy lienholder will always take something rather than not taking anything at all. Make sure you know what you’re entitled to and don’t provide more information than needed to the creditors.
Creditors don’t want you to know that there are a variety of ways to pay liens before the settlements close. The routine way is for the seller to pay at the closing any debts owed and it will be taken from the proceeds of the sale. That means no upfront cost for you and with the right title professional you will be able to successfully negotiate with the creditors to secure a full or partial release of the lien no matter how small the sale.
The lien process when selling a house
- Get a measure of the liens. Figure out what kind of liens or judgments are against you right now and your property you are trying to sell. That is because there are liens that you are not able to negotiate and there are many different liens. Most, however, can be settled with a small amount of money or no cost at all.
- Find a buyer that is qualified. It’s always a challenge trying to locate someone who will be interested in buying your house with a lien against it. That is because most realtors and buyers see liens and judgments as major warning signs and think that it all has to be paid upfront if they proceed with the purchase. Having a difficult creditor doesn’t make the process any easier and may cause your potential buyers to lose patience or give up. It’s important to search for someone who fully understands the process and how it is important for you to sell your home as is. If they know how to secure the lien release and negotiate the settlement to a lower price, that is even better.
- Get someone who has the expertise to do the work. Having a professional involved makes all the difference in the world. A good investor or title company will be able to lead you in what to say to a creditor to settle your liens. For instance, we don’t recommend you telling the lien holder that you are wanting a release to sell a house because this will give them an advantage. However, there are times when you want them to have this knowledge so they will wait on the settlement payment because it will come from the closing proceeds. Being inexperienced with these type of conversations can make it difficult, but with the right expert, you will get the help you need.
Is it easier to sell a house with a lien on it yourself?
Although you can, we don’t recommend you do because of the complicated, strenuous, and highly stressful process it entails. Creditors realize that you may not know what you’re entitled to or all of the options you have to resolve the lien. We find that creditors are more willing to negotiate with a professional who knows the ins and outs of selling a home with a lien.
If you want to sell your home quickly, consider Irby LLC to help. It doesn’t matter to us if your debt is with a credit card company, the IRS, an individual, or tax authority. We have plenty of experience in selling a house in any type of circumstance or situation to allow you to move forward with your life. We want to stand by you through this process and reassure you that you’re never alone.