It’s no secret that tax problems may throw your finances for a loop, but they can also make selling your property a lot more of a hassle when the time comes. One of the most prevalent and challenging to remove liens is the tax lien, although there are many more kinds of liens that can be put on your property due to overdue payments. Even though a tax lien is on a property, it may still be possible to sell it with the help of the correct experts. What follows is essential information.
Is a Lien an Obstacle to Selling a House?
The good news is that liens can still be used to sell property. On the other hand, issues can arise, and sellers run the danger of losing money if the sale takes too long. For selling a house with a lien the below mentioned matters should be considered throroughly.
A Lien on Your Home: What Does It Involve?
“A legal claim or right against a property” is how The Balance describes a lien. An individual or entity can exercise their right to property ownership or use it as collateral to pay off debts and obligations through the use of a lien. There are a number of possible grounds for filing a property lien, some of which include:
- Taxes that have not been paid
- The Homeowner’s Association has filed a claim for non-payment of HOA dues.
- Contractors and credit card firms may file for outstanding payments or debt related to services, renovations, or purchases.
- Past due child support payments
Potential purchasers can be put off by the presence of a lien on the property. Potential purchasers of a home can quickly research any liens on the property since they are public records.
Problems should be few if the seller has sufficient equity in the property and can locate a buyer rapidly. The buyer may back out if they find out that the proceeds from the sale of the house won’t be enough to pay off the lien. A home with a clear title is typically more appealing to buyers.
For How Many Years Is A Lien Valid?
Foreclosure does not necessarily remove liens, and the duration of liens varies by type. After the lien conditions have been fulfilled, a release of the lien must be filed in order to have it removed from the public record. Failure to do so will result in the lien continuing to be attached to the property title. If the seller fails to pay any municipal liens on the property before closing, the buyer will then be held liable for those. The typical homebuyer isn’t going to make the decision to assume the lien(s), but an investor might.
Conclusion
Liens can make it extremely difficult, if not impossible, for some owners to sell their property. Keeping the item in its current condition is now the optimal course of action. You won’t have to spend money on repairs, inspections, and other related costs when you sell your house this way, and you can use some of the money to pay off your debts. Due to the complexity of the procedure, it is advised to contact experts who are familiar with the legal aspects of selling a house that is subject to a lien. In certain situations, getting out from beneath this problem and getting back on your feet swiftly might be achieved by selling your home rapidly.
