If you are preparing to buy or sell property, you may have questions about the clear title requirements and liens. Can a house be sold with a lien on it? If you’re wondering, “How to sell my house fast in Wichita,” this is an important question.
To start, let’s review the title search process and lien dispute resolution possibilities.
Determining Whether a Property Has Liens
Effectively, a lien on your house will mean a lender or bank can attach it as collateral if a loan defaults. The lien filing process means creditors notify the county clerk’s office about any financial claim they have against the property. The county clerk tracks these liens.
When a buyer makes an offer on a home that has a lien on it, a quick title search will reveal that a creditor has a claim on the property. A lien means that the current property owner owes money to that creditor. So, before another party can buy it, the current property owner has to satisfy the creditor’s claims (usually).
How To Satisfy Liens
What if the property owner cannot pay the debt outright? Commonly, the property owner could agree to directly use the proceeds of the home sale to pay off the lien. In rare cases, the lienholder might negotiate a lower amount.
Can a house be sold with a lien on it? Technically, yes. Some property buyers will purchase the home with the lien intact and satisfy it themselves later, so it’s possible.
Types of Liens on Property
Do you have a lien on your property? If you don’t know, order a title search. This process costs some money, but it gives you an accurate list of any liens tracked for your property, such as:
Mortgage
A mortgage lien is common if you owe money to the bank from a home loan. The main mortgage holder will claim lienholder rights first when you, as the seller, pay off their lien from the proceeds of selling the property.
Tax
A federal tax lien on your property could arrive from the IRS if you’ve failed to pay your owed income taxes. Local property tax liens and income tax liens are possible, too.
Judgments
Have you lost a lawsuit? The judge may place a lien against your home for the amount you owe in financial damages. You also could receive a judgment against the property for failing to pay child support or alimony or not paying dues to your homeowners’ association.
Count on Professional Home Buyers for Help With Understanding Liens When Selling a House
Can a house be sold with a lien on it? Yes. In fact, at Professional Home Buyers, we focus on buying homes in any condition in the Wichita area, including those with tax liens and other liens on them.
Whether tax lien implications or something else is making your home sale process complicated, why not let us review your situation and make things seamless to get you a fair price? To learn more about how we buy homes or to get a free quote – call (316) 202-1628.