If you have a lien on your San Antonio house, you may feel trapped if you can’t sell the house or pay off the lien. The good news is, you don’t have to feel trapped in your unwanted house any longer. Learn more about how to sell a house with liens in our latest post.
What Is A Lien?
According to Bankrate, a lien is a claim made against a property in order to satisfy a debt. It’s a way for a lender or creditor to recover what’s owed to them. Having a lien on your San Antonio house doesn’t mean you can’t sell it. It just means you have to satisfy the lien before doing so.
Why Do You Get Them?
The most common types of liens are judgment liens, mechanic’s liens, and tax liens. A judgment lien comes after you lose a court case and have to pay someone else for a loss. A judgment lien will be filed against your assets until the payment is made in full. A Mechanic’s lien comes from contractors who did the work on your house. They will often issue a lien on your house to ensure they are paid. A tax lien is issued if you do not pay your state or federal income taxes. A lien can also be filed in the event of unpaid alimony or child support. If payments aren’t being made as required by the court, then the receiving party can file a lien against the owner of the property.
Check Your Title
Check with your county’s assessor and clerk’s office to search for liens on your property. A title company will also check for liens at the time of purchase, but you want to be prepared prior to that. It’s not uncommon to find a lien in your name that you weren’t aware of. It might have been filed in your name erroneously or without your knowledge. You don’t want any surprises when you decide to sell.
Effects On Your Credit
A paid off lien can appear on your credit report for up to 7 years. An unpaid lien will linger around for 10. These can be big red flags to any future creditors when you are attempting to borrow money. Having liens on your credit report make’s you appear to be a higher risk and will lower your odds of getting approved.
Remedy The Situation
The quickest way to remedy the situation is to pay the lien off . However, this can often be easier said than done. If you weren’t able to pay the debt off in the first place, then you may still have trouble. Many lenders will work with you as long as you create a plan for repaying the debt. Many people will accept payment once the house has sold. Some of the other creditors could demand payment before the house is even sold. Mortgage liens, which are filed against your property by the lender, won’t affect the sale of the home. Talk to an attorney if your situation is more complicated or if you’re unsure about what you need to do to satisfy a lien.
Sell As-Is
A great way to sell a house with liens in San Antonio, is to sell your house directly to a buyer. Most home buyers will offer to take financial responsibility for the lien, thus allowing you to sell the house. Lone Star Real Estate Solutions LLC will help you by paying off your lien and buying your house for cash. We are here to help you with liens or any other difficult situations you may face when trying to sell your San Antonio home.