Selling a House with Liens

LIENS:

Sometimes things don’t go as planned – we get it. Many people have liens tied to their house making it more difficult to sell and make a nice profit.

When you have liens on your house, the lien holder has a right to keep possession of your house until the whole debt owed is discharged. There are three types of liens we’ll go over each one.

Types of Liens:

  • Consensual

  • Statutory

  • Judgment

 

Consensual: These liens result from voluntary consent. The most common types of consensual liens are those of a mortgage loan and advance of credit. These types of liens are normal and are non-possessory as long as you keep up your end of the deal. Keep paying your loan or line of credit and nothing will happen with your house. Although Consensual liens can become possessory if payments are not being paid to the loan or line of credit.  The lien here is used as a backup plan.

 

Statutory: These liens are used by creditors to access your assets to satisfy a debt. You can break up Statutory Liens into two types of liens:

  • Mechanic’s Liens – This type occurs when a contractor does work on your house and is never paid. The contractor can attach a lien to the house for his unpaid work. When you try to sell your house the debt will have to be cleared first. This can often times delay or prevent the sale of your house.
  • Tax Liens – This type of lien is placed by the state or federal government. This can be placed on the house for delinquent property taxes, income taxes, and estate taxes.

 

Judgment: These liens is the most dangerous form. A judgment is created when a court grants a creditor an interest in the debtor’s property. A judgment can arise in many different circumstances. For example if you injure someone in an accident the injured person can sue for damages and have a right to your house. The term “judgment lien” is used in its strictest sense: a lien attributed to a court judgment, where the court judgment itself is the basis for the lien.

 

If you’re having trouble selling your house, give us a call. We can take a close look into your own personal case. We will evaluate all your options and help you find a solution that fits you. Give us a call today – (800)220-2236 

 

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