Why Liens Should Be One of The Easiest Tasks to Deal with As a Homeowner?

At times, a claim on a property can hinder the sale or purchase of that property. People often face this problem when there is a lien on a property. These liens are sometimes known before the sale. Other times, they are unknown until after the purchase. This leads to problems for the buyers and a long legal process. For this reason and more, there is a general notion that liens make owning a house difficult and should be avoided. But this is not entirely true.

Yes, having a lien on a title presents a problem for the purchase or sale of that property. But this is an issue that can be resolved. Therefore, we will highlight why liens are one of the easiest tasks to deal with as a homeowner. But let us begin with a brief explanation of what a lien entails.

What is a Lien?

A lien simply is a claim on a land or property, one which hinders the sale or purchase of such property. It is a claim over land owned by an individual. This is a claim that could lead to the foreclosure or repossession of such land if the claim is not cleared. By claim, it means that there is an unpaid debt on that property or unpaid mortgage. If the lien is not fully paid, it prevents a person from selling their house. If you buy a property with a lien on its title, you have to clear such a lien to claim full ownership of the property.

Therefore, you must carry out proper research before buying a house to ensure that it is clear of debts and unpaid mortgages. This is because the realtor can hide the lien to sell the house. Also, there are various types of liens; judgment liens tax liens. But the most common are mortgage liens.

Why Liens Should Be Easy to Resolve

Unlike other property-related issues, liens should be easy for a homeowner to resolve. The means of resolving are different for buyers and sellers.

For a seller, before you can sell a property that has a lien on it, you have to clear such a lien. This means that for a house with a mortgage lien. And as a homeowner who wants to sell, you have to fully repay the mortgage before the sale can go through. 

• You can negotiate a payment plan with the lien issuer in a way that the lien is removed for the property to be sold.
• You can also negotiate with the buyer to take up the payment of the lien. If he or she disagrees, you can use the proceeds from the sale to clear the lien. But this leaves you with little profit from the sale.

While for a buyer, resolving a lien is easy. You should not buy a property with a lien on it in the first instance. Carry out your research! Use real estate professionals, or contact us today. We buy houses in Alabama and ensure that the property you want to buy is free from liens.

Conclusion

In summary, liens block the sale or purchase of properties. But with the right steps, these are be resolved easily. A buyer should avoid properties with liens, unless the seller agrees and clears the lien before the sale. In contrast, the seller can either negotiate with the issuing body or the buyer to clear off the lien.