Selling your home comes with a lot of challenges and hassles and if your house has a lien on it, it may seem even more difficult to sell your house. Although when a lien is placed on a property, it makes it difficult to sell the property- but not impossible.
So, it’s possible to sell a house with a lien on it but the process may be more challenging than usual.
What Is a Lien?
A lien is a claim that a creditor places on an asset or a property as collateral against a debt. Here are a few things to know about liens:
Liens can be the consequences of legal action, unpaid taxes or willingly assumed as collateral for a loan by the property owner.
The creditor has the right to seize the property or assets if the debtor is not able to clear their debt.
A lien cannot be placed on your home due to debts like credit card bills, medical bills, or personal loans.
You can attract a lien on your proper when you owe debts like tax bills.
Is It Possible to Sell a House With a Lien on It?
Yes, it’s possible to sell a house with a property lien on it, but you’ll need to go through certain processes to achieve this. The process includes:
- First, determine the creditor that placed a lien on your property and how much you owe.
- Next, think about the amount you’re yet to pay on your mortgage
- Estimate how much your home is worth on the market by contacting a real estate agent.
Once you’re armed with this information, you can proceed to try to sell your house with a lien on it.
How to Sell a House With a Lien on It
You can’t go ahead to sell your home when it has a lien on it without the permission of the lien holder. So you can agree on some terms with your lienholder if you intend to sell your home and these terms include:
- Short sale
To achieve this, you need to get the lender’s approval because you’ll be selling your property at an amount lesser than the lien. Also, note that this method isn’t always guaranteed to work.
- Paying off the lien
If you don’t want to sell with a lien, then you can choose to pay it off before you sell. This will give you full right over your property without the interference of the lender.
- Sell with the lien
You can only achieve this if you’re able to find a buyer who’s ready to buy your house with a lien on it. This can be challenging because no buyer wants to buy a house with extra complications.
Another way you can sell your house with a lien on it is to sell to a cash home buyer. All you need to do is set up a meeting between the lender and the cash home buyers and the rest will be sorted out.
If you’re looking to sell my house fast Birmingham, then you’re in the right place. At Chase Pays Cash For Houses, we buy houses Birmingham Alabama at a fair and competitive price. We will take care of all the issues you may have with your house, all you need to do is settle for a reasonable price. We’re your go-to option if you’re looking to sell my house fastAlabama.