Selling your property can be a daunting, emotional and time consuming process, and there are many factors that can contribute to that, including having liens on your home. If you are unfamiliar with what liens are, they are legal claims against a property that can be placed by creditors, the government, or even contractors who have gone unpaid for work they have done on the property. Unfortunately these claims can cause an extra headache when you want to sell your house.
If you do plan to sell your house with property liens in Eugene, you’ll want to understand your options and the necessary steps that you can take to make the transaction as smooth as possible and free of surprises. In this blog post, we’ll cover what you need to understand about handling property liens when selling a house in Eugene.
1. Determine the Type of Lien
The first step in the process is knowing what type of lien you’re dealing with. There are a handful of lien types that can be placed on a property, including:
– Tax liens: The government places these against your home when there has been a failure to pay property taxes.
– Contractor liens: Contractors place these liens against your property when there has been work completed and a failure of payment by the home owner.
– Mortgage liens: Your lender will place a mortgage lien against your house when you fail to make the payments on your home loan. These types of liens are what start the pre foreclosure process for property owners.
– Judgment liens: When a homeowner loses a lawsuit and fails to pay the required judgment ordered by the courts then this type of lien will be placed against the property.
To identify the type of lien and exactly what it is for you’ll want to obtain a title report for your property. To do this you can reach out to a real estate attorney or contact your local title company directly. Doing this first and foremost allows you to plan accordingly..
There are specific procedures and rules for each type of lien mentioned above, therefore it is crucial to understand which type of lien you’re looking at before taking the next steps in the process of selling your home. No matter which type of lien you are dealing with, you’ll want to take the necessary steps to resolve it before listing or you can look into utilizing the assistance of a professional property buyer such as Property Bridge. We are accustomed to addressing these situations when working with folks who find themselves in these situations.
2. Contact the Lien Holder
Once you’ve taken the steps to identify the type of lien you’re working with you’ll want to reach out directly to the lien holder. Depending on the type of lien, the age of the lien and the amount owed there’s often a good chance that you can negotiate down the debt for less than what the original lien requires. Creditors tend to want to work with people and would prefer to make some money than no money.
Although the above is often true, there are other times that you will not be able to negotiate a settlement and the full amount of the lien will be called due. In this case you will need to pay the lien off before selling the home if you plan to sell traditionally on market. This can be a challenging situation, especially if you don’t have the funds available to pay off the lien. If can be frustrating for homeowners who need to sell a house right away, but are stuck because of the liens that have been put on their property.
3. Consider Selling to a Cash Home Buyer
If you’re unable to pay off the lien and don’t want to go through the hassle of negotiating a settlement, you may want to consider selling your house to a cash home buyer like Property Bridge. Cash home buyers specialize in purchasing houses quickly and can often provide a cash offer within 24 hours of seeing the property.
When you sell to a cash home buyer, you don’t have to worry about paying off any liens or making repairs to the property. The buyer will take care of everything for you, including debts, repairs, and even the clean up, allowing you to sell your house quickly and move on. It’s important to know that if you are aware of any liens against your property that disclosing them upfront makes the process smoother for all parties. Liens always appear during the escrow process and must be paid to complete the transaction.
4. Work with a Real Estate Agent
If you’re not sure what to do when dealing with a lien, you may want to work with a real estate agent who has experience handling these types of situations. A real estate agent can help you navigate the process of selling your house with a lien and can provide guidance on negotiating a settlement or finding a cash home buyer.
When choosing a real estate agent, make sure to choose someone who has experience working with liens and who understands the local market in Eugene. This will ensure that you get the best possible outcome when selling your house. Keep in mind, that working with an agent can take considerably longer, and may require a hefty amount of cash out of pocket.
Selling a house with a lien can be a challenging process, but it’s not impossible. By understanding the type of lien you’re dealing with, contacting the lien holder, considering selling to a cash home buyer, and working with a real estate agent, you can successfully sell your house and move on to your next adventure.
If you’re looking to sell your house quickly in Eugene, consider selling to Property Bridge. We buy houses directly and can help with any difficult property or situation. If you have a lien on your property and need to sell if fast, our team can help. Contact us today to get started! (541) 833-0304