Selling your house can be a stressful and time-consuming process, especially when there are liens on the property. If you’re not familiar with liens, they are legal claims against a property that can be placed by creditors, the government (IRS), or even some contractors who have gone unpaid for work they have done on the property. These claims can make selling your house more complicated than you might expect.
If you’re looking to sell your house with property liens in McAllen, it’s important to understand your options and the steps you can take to make the process as smooth as possible. In this blog post, we’ll cover everything you need to know about handling property liens when selling a house in McAllen.
1. Determine the Type of Lien on your Property
The first step to handling a lien is to determine what type of lien you’re dealing with. There are several types of liens that can be placed on a property, including:
– Tax liens: These are liens placed by the government when a property owner fails to pay their property taxes. In the Rio Grande Valley more than likely there will be liens placed by Hidalgo County when homeowners don’t pay they property taxes. Also the local school districts can place liens on the properties.
– Contractor liens: These are liens placed by contractors who have done work on the property and have not been paid. They are also called mechanical liens. Some common contractor liens are placed by builders, roofers, electrical subcontractors.
Another common lien is placed by solar panels installers or water purifing system installers. More than likely, they will need to be paid before a house is sold to a new buyer.
– Mortgage liens: These are liens placed by a mortgage lender when the homeowner defaults on their mortgage payments. This is often the case before foreclosure proceedings begin. There may be first and second mortgage liens on the property. Equity liens are very common especially with older properties.
– Judgment liens: These are liens placed by a court when a homeowner loses a lawsuit and owes money to the plaintiff. Sometimes they are credit card judgements, other, the result of a lawsuit.
Each type of lien has its own set of rules and procedures that must be followed to resolve them, so it’s important to understand which type of lien you’re dealing with before moving forward. No matter which type of lien you are dealing with, you’ll want to resolve it before listing, or by utilizing the assistance of a professional property buyer such as Dolfin RGV.
Homeowner association are another entity that often places a lien on the property, liens that need to be cleared in order to sell a house and transfer the deed to a new owner.
If your house has lots of liens, it can eventually be foreclosed. A sale to a direct buyer may be a solution to avoid foreclosure and walk with some money in your pocket on time.
2. Contact the Lien Holder
Once you’ve determined the type of lien you’re dealing with, you’ll need to contact the lien holder to find out how much you owe and what steps you can take to resolve the lien. Depending on the type of lien, you may be able to negotiate a payment plan or settle the debt for less than the full amount owed.
It may take time to get the lien payoff, especially when a mortgage has been sold several times from one institution to another.
If you’re unable to negotiate a settlement, you may need to pay off the lien in full before you can sell your house. If it is an older lien, interests and lawyers fees can add on siginficantly. 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 Dolfin RGV. 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. We will help you clean your liens and receive the extra money to move on.
4. Work with a Real Estate Investor
If you’re not sure what to do when dealing with a lien, you may want to work with a real estate investor who has experience handling these types of situations. An experienced local cash home buyer can help you navigate the process of selling your house with a lien and can provide guidance on negotiating a settlement .
When choosing a real estate investor make sure to choose someone who has experience working with liens and who understands the local market in McAllen. This will ensure that you get the best possible outcome when selling your house. Keep in mind, that working with a direct buyer that has experience in real estate, may help you navigate the process and enable you to sell your house with liens.
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 (that will buy your house as is without requiring lender approvals, repairs, or inspections), you can successfully sell your house and get a fresh start.
If you’re looking to sell your house quickly in McAllen, consider selling to Dolfin RGV. 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! (956) 904 5234