Selling a house can be complicated enough without adding additional issues to it. One problem some property sellers encounter is learning that there’s a lien recorded against the property they’re trying to sell.
If you’ve discovered that there’s a lien on your property, knowing the options available to you can make for an easier home selling experience. In this article, we’ll discuss the potential difficulties of selling a house with a lien, as well as some tips to get the most value out of your sale.
Can You Sell a House With a Lien On It?
Many sellers have asked us, “Can I sell my house with a lien on it?” The short answer is yes, selling property with a lien is possible, although it can be more challenging. There are more legal implications to maneuver around if you’re planning on selling through the traditional house market, and depending on the type of lien, your sale options may be limited.
What is a Lien?
If you’ve heard the term but aren’t entirely sure what it entails, a lien is a legal claim made against a homeowner to guarantee the payment of a debt. The lien serves as collateral, and money from the home sale will be paid to the lienholder if the homeowner has failed to pay the debt before selling.
There are several types of liens that a creditor can put on a property, which include:
- HOA liens: An HOA can place a lien on a homeowner’s property if they’ve failed to pay their dues on time.
- Mortgage liens: When a homeowner takes out a mortgage loan to purchase a home, they sign a deed of trust that effectively puts a lien on the property.
- Judgment liens: If a person wins a court settlement or lawsuit issued against a homeowner, they can record the judgment against the home.
- Mechanic’s liens: If a homeowner hires a contractor to perform work on their home and fails to pay them, the contractor can take out a lien on the property.
- Child Support liens: If a homeowner fails to pay court-ordered child support, a lien on the property can be imposed by the court.
- Property Tax liens: If a homeowner owes property taxes, the government may impose a lien on the property.
Find Out If There’s a Lien On Your House
While reading this article, you’ve probably wondered: how can I find out if there is a lien on my house? Luckily, the answer to this is simple. Liens are part of the public record, which means you can search for a lien on your property by visiting the county clerk or recorder’s website. It’s typically free to search for liens, but you may have to pay a fee to receive a copy of the report.
You can also pay a real estate attorney or title company to research a lien for you, which may be a better option if you’re worried about missing anything important. They can also help walk you through the legal details of the lien as well as any judgment issued against you.
Selling Property With a Lien
If you don’t have the money to pay the lien before selling your home, you may be relieved to learn that you still can sell a property with a lien on it. Here are a few tips for selling a house with a lien:
Check the Statute of Limitations
Different types of liens have various statutes of limitations. In Florida, creditors can collect civil judgment debts for up to 20 years after the judgment is recorded. A Florida judgment lien will automatically expire after ten years if a judgment is more than 20 years old and has not been re-recorded.
Unless a lawsuit has been filed, mechanic’s liens in Florida remain in effect for a year after recording. However, if a suit is filed in the proper court of jurisdiction, the lien will remain in effect until the claim is resolved.
If you find that a lien has been issued against your property, check the statute of limitations on it before attempting to sell the property. A skilled real estate attorney can assist in this by determining if the statute of limitations has expired and if the lien can be released.
Negotiate With the Lienholder
A lienholder may be open to negotiating a lower amount on the lien in some cases. For example, collecting the full value of a lien or judgment is typically difficult for creditors, so they may be willing to eliminate a portion of the debt or agree to a monthly repayment plan to make repayment more manageable.
Sell to a Cash Offer Homebuyer
You may be able to find a traditional home buyer willing to take on the property lien, but the addition of a lien is often more than enough to scare off any potential buyers. Selling your home to a reliable cash offer home buying company can save you the headache of dealing with the lien yourself or guarantee fast money to pay the lien off. In addition, you’ll receive a fair cash offer to close on your property quickly, eliminating the stress that typically results from selling property with a lien.
We Make Selling a House With a Lien Easy for Florida Sellers
We hope you’ve learned that while selling a house with a lien is technically possible, it can be a complicated and frustrating process. Selling to a reputable cash offer homebuyer like Greg Buys Houses can save you a lot of stress and take the struggle of dealing with a lien off your shoulders.
Greg makes selling your Florida property easy. He’ll walk you through the entire process to get a no-obligation, all-cash offer, and better yet—there’s no cost involved! So reach out to Greg to get out from under your property lien by receiving your free cash estimate today.
Greg Buys Houses is a company that purchases residential real estate for renovation and resale at a profit. Offers are made to sellers based on market value and repairs needed. Greg Buys Houses will do everything possible to bring forth the highest possible offer to give the seller the most benefit from dealing with a fast sale.
We buy houses in the following areas –
Our cash home buyers are always ready to assist you solve your problems. If you have any questions about selling your house fast for cash anywhere in Florida, simply reach out to us and we’ll assist you further.