Feeling the itch to move out of your house? In the U.S. in 2018, the average duration in a home is 13.3 years.
In larger cities, though, they’re moving more quickly. For example, people are moving out of their homes at 12.2 years in Jacksonville.
Are you wondering, can you sell a house with a lien on it? Read on to discover the answer to this question and how to proceed to make your dreams happen!
What Is a Lien on a House?
This is when there’s a public record with a county records office for a property. It’s a way for creditors to collect what they’re owed.
Can You Sell a House With a Lien on It?
Yes. It can be a challenge though since there are financial and legal requirements you have to consider.
It has to be sold as-is. You can either sell it yourself, go with we buy houses with cash options, or through a realtor.
If you have a Department of Revenue lien, these are harder to take care of. This is when you don’t pay state taxes. Work with a CPA or attorney to clear it.
Have the attorney or CPA speak with the Department of Revenue about negotiations if you can’t afford it. This might mean that you’ll only need to pay a portion of it.
Taking Care of Your Lien Fast
In order to prevent delays for closing on your home, your best bet is to pay off your debt fast. If you can’t afford the lien, you might be able to use what you make on the house toward the lien.
The lien can be taken from your profit without you have to do anything. Your real estate agent can place the lien into your settlement agreement.
You can also take out a bond to pay for the lien. Bonds are expensive but they’ll be a security feature for the lien so you can proceed with selling your house.
Understanding Your Options
Before proceeding with the sale of your home, ensure that you understand what will happen with the lien and what you’ll owe to avoid surprises. Get all promises in writing for your records.
Sometimes it’s a quicker option to sell your home for cash so you don’t have to worry about the long and drawn-out legal process. This will help you prevent having to deal with any middle parties.
When your debt is paid you’ll receive a Letter of Satisfaction. Once this occurs then creditors can take advantage of the situation since they think you won’t know your rights.
Answering the Question To, Can You Sell a House With a Lien on It?
Now that you’ve explored the answer to, can you sell a house with a lien on it, you should have a better idea if now is the right time to sell. Would you like to read more lifestyle content? For everything from lifestyle to business, check out our other articles today.