Even when you think your real estate transaction is going to be simple, things can crop up. Once such complication would be the existence of a house lien. Having a lien means that the creditor has the first right to the property. Unless you are able to pay off this obligation, you won’t be able to sell the home.
If you find yourself in a situation where you need the money from the sale before you can invest in a new home, then it’s important you get rid of those house liens fast. Otherwise, you could face a deal breaker when you go into a sale.
How Does a House Lien Work?
A house lien is placed against a property that requires the repayment of any obligation. This means, when you receive your loan from the bank in order to purchase your property, that lender then files a house lien with your county’s clerk.
This filing allows the lender every right to seize your property in the occurrence that you refuse to pay off the loan. Mortgages are the most common versions of liens, but there are others you might face as well. For example, there can be tax liens when property taxes have gone unpaid. You might even have a lien for unpaid construction work.
Varying liens are going to have priority based on the order they were filed. Your first mortgage would have been filed prior to a second, so the first lender has rights to the property first. If you pay off that first mortgage, then the second lender becomes the priority.
Any filings after the second lender fall in suit. The only exception to this is when tax liens are in place. They also take the first priority. It’s important to keep in mind that you’ll be unable to sell your home while there are any liens on the property.
How to Verify a Valid House Lien
Before you proceed to either purchase or sell your home, it’s important that you perform a lien search on the property. All liens will be filed in the county where the home is located. Just go to that county’s website and enter the information in the search functions. Sometimes, you’ll only need an address, but it might require a parcel number, block or lot as well.
You should be able to find all the information you need from the tax assessment. If the county doesn’t have online searching capability, then you’ll have to visit or call them instead for help.
How to Remove the House Lien
When you verified the house lien, it’s time to resolve it before selling the property. Start by contacting your lien holder to get the payoff amount. This is the amount you owe and it includes all the charges and interest.
Unfortunately, paying off this debt is only one part of the process. Then, it’s up to the lien holder to cancel out the obligation. I know you don’t want to hear this, but that can take several months. Why so long you ask? There are two reasons:
- Based on how quickly the holder of the lien acts
- Plus the volume the clerk at the county office is currently facing
If you want to avoid any issues with the purchase, you might consider contacting the lien holder directly and having them endorse the house lien for cancellation. Then, they can give that document to you so you can make a copy. Take your original to the clerk yourself and ask how long until it is filed.
Completing the House Sale
Once you have a clear title, it’s time to move forward with the house sale. Start by doing another search so you can show the buyer that the property is free of liens. Unless there has been a delay or other unforeseen issue, you shouldn’t have a problem.
If you are a buyer, it’s equally as important to do these searches prior to making your offers. It will save you from countless hours of frustration during your transactions.
How Can Integrity Homebuyers Help With a House Lien?
Talking with creditors can be a real hassle. To have the best outcome, you need someone with experience that the average homeowner doesn’t possess. Integrity Homebuyers knows the tactics needed to get creditors to see what’s in their best interest.
We have dealt with house liens and various other property liens, so we are ready and equipped to help. We will navigate this situation with you and offer you cash for your home. All you need to do is call us at (800) 818-4145 or simply complete our form on the right today. Don’t wait another minute.
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