Integrity Homebuyers wants to be your go-to source when it comes to a property lien or any other lien that could affect the sale of your home. We’ve put together this exhaustive list of liens and how they relate to the sale of your home. When you are wondering how to sell house with lien, reference this list and read the tips on negotiating with your creditor.
Judgement Liens
Judgement liens are put on your house resulting from a judgment occurring in court. Unfortunately, there is no negation of these types of liens as they were the result of a legal suit. This judgment remains attached to your house for twelve years in the state of Maryland. These liens can also be absolved through Chapter 7 bankruptcy.
Vendor’s Lien
When the buyer doesn’t pay the full amount during the sale of a home, the seller has the right to take it back from them. You’ll see this most often during an application of purchase-money mortgages.
A purchase-money mortgage is a note given by the buyer to the seller as a way to finance a home when the buyer can’t qualify for the bank loan. Instead of borrowing everything from the bank, the buyer chooses to have some financed by the seller instead. This is a difficult lien to negotiate.
Medicaid Lien
Medicaid is responsible for covering nursing home fees to hospital bills. When someone passes away and they had an estate, a Medicaid lien could be placed on the property. Thankfully, many people have success in negotiations with Medicaid.
Home Equity Loans
When there is a home equity loan, that bank is the junior lien holder behind the primary mortgage. That means if your house goes into foreclosure, their lien will be wiped away. With that said, it is in their best interest to negotiate with you.
Most companies don’t make it easy to perform negotiations, so you need someone tough on your side to help you sell house with lien.
Statutory Liens
There is another type of lien called a statutory lien. This is created because of a statue that was broken. There isn’t a lawsuit or court that needs to place this lien into effect. Some statutory liens include:
Contractor’s or Mechanic’s Liens
When a contractor does work on a home and the homeowner decides not to pay, there can be a lien put on the property. When the homeowner then goes to sell, that contractor’s lien must first be paid. This is in addition to the mortgage and any other liens that might be present.
What’s important to note is that contractor liens can also be filed against your property by a sub-contractor. For example, if you hire someone to do the renovations on your property and they hire another contractor to help, you could be liable if that sub-contractor doesn’t get paid.
Child Support Liens
When someone doesn’t pay their child support, a lien remains on the house until the amount is paid. The nice thing about this type of lien is that they are easy to negotiate or even temporarily lift in order to sell the house.
Property Lien
A property lien takes priority over any other lien on the property. If you don’t pay your taxes, the government will force the sale in order to pay it off.
Sometimes, your lender will pay these taxes and then add that amount to your mortgage. This enables them to receive the money in case of a sale. It is nearly impossible to negotiate a property lien, especially for county taxes.
IRS Lien
Have you ever known the IRS to negotiate? It’s not very common, but it does happen especially when you owe them more than your house is worth. If the IRS lien exceeds the value of your home, they might negotiate to take a partial payment instead.
Other Lesser Known Liens
Did you know that the Homeowner’s Association has the right to place a lien on a resident’s home when they don’t pay their community fees? There have even been instances when the HOA has foreclosed a home over a few thousand dollars. It isn’t normal for the HOA to negotiate but they might take a reduction or offer a partial release for you to sell house with lien.
In addition, the city or county can place a lien on your home if you don’t take care of the upkeep. This is referred to as a weed cutting lien.
Don’t Tackle Your Property Lien Alone
It is never easy to talk with a creditor. They are trained to intimidate and convince you that you must pay the full amount to avoid action. Speaking with them requires experience and inside knowledge that most regular homeowners don’t have.
Integrity Homebuyers helps to show the creditor how negotiations will benefit their bottom line. We make them think that it is in their best interest to work with you.
Despite our comprehensive list of liens you might be facing, there are even more out there. Thankfully, we are equipped to handle any lien you may have. The first step is to avoid trying to handle the matter on your own. When you do this, most creditors will automatically deny you.
It helps to have someone bigger than you standing by your side. Not only does it show the creditor that you are willing to play ball, but it also keeps you from looking desperate. When desperation shows, creditors tend not to negotiate.
With our experience, skill and knowledge of this area, you are sure to come out of the situation in better standing then you went in. Give us a call at (800) 818-4145 or fill out our simple form today. Let’s get the ball rolling.
We Buy Houses in Maryland and Washington DC
