“Can you sell a house with a lien?” is question sellers sometimes ask when selling their homes. A lien is a debt placed against an asset as leverage to collect a debt. The most common liens are “mechanics liens.” A homeowner may have had some work done and forgot to pay the bill, couldn’t pay the bill, or paid only part of the bill.
If the seller refuses to pay the debt, the creditor places a lien on the property title and takes possession of the asset, which typically only happens with mortgage lienholders. Still, selling a home with a lien is possible. In this article, we explore how you can do it.
The easiest solution is to satisfy the debt, but the seller may not have the resources. Paying off the debt is your best bet if you have enough cash on hand and can afford to pay off all or part of the mortgage balance upfront. It’s challenging to market a home for sale with “lien baggage.”
If you can’t sell your house for what it’s worth because of the lien, talk to the creditor about negotiating the debt. Renegotiating may lower the amount of money due or extend the repayment period. You could also negotiate a lump sum payment that covers the debt.
If you want to dispute a lien on the title to your home or think it is for an incorrect amount, hiring an attorney to remove it from your record might be the best option. It may also be the most costly option.
Certain circumstances can lead to the buyer inheriting the lien. For example, a buyer may inherit a lien when buying a distressed property or a foreclosed property. The buyer may also pay off the lien at the close of escrow.
A lien may not deter some investors planning to invest through subject-to financing. However, retailers are unlikely to acquire your lien.
If you want to sell your house with a lien, the best thing you can do is hire a realtor. Real estate agents have been working in the field for many decades, and they can help you throughout the process.
If you need help buying or selling your Knoxville home, please give us a ring at 865-675-8326! You may also reach us through our contact page, and we’ll reach out personally and promptly.
Remember to check back every week for more updates from the Knoxville Home Team.
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