Should the process of a title search reveal existing liens, it can certainly slow down the gears on the sale of your home. A lien is a legal notice of an unpaid debt. For example, suppose you feel the claim details are incorrect or that the creditor filed the lien on your property in error. In that case, an attorney can assist you in researching the history and helping you negotiate for final payment if the debt is valid.
Liens also have different priority levels against the debt, and when the property sells, the order of the highest priority lien determines the order of payment. While not always applicable, the date filed determines repayment priority. Understanding which type of lien is on the property can make handling the lien a bit less overwhelming. Read on to explore liens and how to sell a house with liens in Houston, TX.
Consensual Liens
There are two types of consensual or voluntary liens. The lender can take possession of the property with either kind of lien, known as foreclosure, and ends in an auction to sell a house with liens in Houston, TX.
- Purchase-money security interest lien: This is typically a mortgage, wherein the asset used to purchase the home is the subject of the loan.
- Non-purchase-money security interest lien: This is a second mortgage, wherein the debtor utilizes the property as security for a cash loan.
In both cases, the lender has the right to foreclose and force a sale of the home to recover the owed debt.
Non-Consensual Liens
Enacted by operation of law or statute, statutory liens are non-consensual or involuntary and are typically tax-related, giving the creditor a secured interest on the property. The creditor may pursue the secured interest and have the property sold. Liens that result from court proceedings from a lawsuit from an individual or company filing a claim are known as judgment liens. Ultimately, if the borrower fails to fulfill the loan terms, this type of lien allows the creditor to take the property’s title and sell a house with liens in Houston, TX.
Creditors who seek repayment file the lien against a property and receive a payment if the property sells, or, in some cases, the creditor can seize the property and sell a house with liens in Houston, TX to recover the debt. If you cannot repay the debt, you may find you’d be better positioned financially in the future by taking steps now.
Pay Off Your Liens
You could sell a house with liens in Houston, TX on your terms before further action by the creditor and arrange to pay off or resolve the debt. Because existing liens can complicate the process, it’s beneficial to work with a pro experienced in these listings, like the professional investors at Local Land Buyers . When you pay off the debt, you need to request a release-of-lien form from the lender, a local attorney, or your local government. This form will need to be notarized and filed with the county recorder. Be aware that there may be filing fees associated with the process, which makes the release of the lien public information.
If you’re paying off a federal tax lien, when paid in full, the IRS will provide you with the release of the notice, which you will forward to the county to remove the lien.
Sell Directly to Local Land Buyers
If you find yourself short on money, time, or patience necessary to deal with the hassles of listing and showings, call Local Land Buyers instead – we can help. The professional investors at Local Land Buyers have helped other homeowners just like you overcome the hurdles that liens can throw at you; we’re happy to answer any questions you have about a direct sale and help ease your mind of any concerns.
A direct sale to Local Land Buyers is a quick process; your closing could be in a matter of days or slightly delayed if you need just a little more time to move. The professional investors at Local Land Buyers don’t charge commissions, and there are no hidden fees in our straightforward contracts; you won’t even pay closing costs. At Local Land Buyers , we will lay out the numbers side by side so you will know what the property would sell for through listing and all of the costs you would face by selling on your own. Then, we will detail our offer, allowing you to understand the numbers for yourself to see the offer is fair.
The pros at Local Land Buyers are your neighbors who live and work here in Houston, TX; therefore, we take every step to ensure you feel good about the deal from the first time we speak until long after closing.
Save time, save money, and make the process easy on yourself by working with Local Land Buyers to sell a house with liens in Houston, TX and walk away from the closing with cash in hand. Contact Local Land Buyers at 800 503 5640.