Introduction

The home sales process becomes more complicated when a lien against the property exists, whether for unpaid taxes, building costs, or past-due upkeep. An asset-based debt obligation is a tax lien. When there is no documentation of past tax payments, the authority places a tax lien on the property. Furthermore, you can only sell your home if the unpaid amount is settled. Selling a house with a lien is impossible due to the imposition of a tax lien. If you find yourself in this situation, seek advice from real estate professionals.

What is a Lien on a Property?

A lien is the ownership right over your home held by a creditor or lender. If you no longer make regular payments or have missed one, the debtors can seize and sell the property independently. When selling a house with a lien, homeowners face several obstacles.

Selling a House With a Lien — Is It Possible? 

Homeowners can sell properties with liens. The seller must establish ownership and remove any outstanding liens before the buyer can take possession of the assets. One of the following payments should be considered to get your title cleared:

• Try to work out a lower payment that you can manage
• Pay down the debt in full
• Include the payout in the revenues of the transaction 

Types of Property Liens in Texas 

The property may be subject to various liens. For instance, loan liens are recorded on the buyer’s house as collateral to secure the loan. Unintentional liens can occur when someone receives a settlement for an unpaid debt or when a lender chooses to disclose them.

Lien on Taxes 

The government has the authority to place tax liens on homeowners’ properties when they make payments for overdue taxes. The homeowner must make the required payments to release the lien. Homeowners may also seek legal counsel from a real estate attorney to settle or dispute the lien.

Tax liens can have priority over all other liens, especially first loan liens. Most financial institutions include tax liabilities in loan repayment plans and deposit taxes on the borrower’s name using a trust account. It helps them reduce susceptibility and protect the lenders’ real estate ownership.

Liens on Attorney 

Administrative liens, commonly called judgment liens, are placed on properties when a homeowner wins a court case and the court-mandated fines are not paid. If a residence has a judgment lien on it, selling it requires approval from the court.

Lien on Mortgage

The most common type of property lien in Texas is a mortgage loan. Primary and secondary mortgage liens are the two main types that are typically found.

• Primary Lien: The first mortgage is the most critical lien. Regardless of the second lien holder’s interests, the lending institution wants to ensure they are paid as soon as possible in the case of a borrower’s default.
• Secondary Lien: Owners who bought a home with a loan already recorded on it may be interested in borrowing money from their existing lender or another one if they currently have a certain amount of equity in their property.

Liens on Maintenance and Assistance for Kids

If the owner doesn’t make the court-mandated child support or maintenance payments, a lien could be placed on the assets.

Lien on Homeowner’s Association  

Liens for offenders’ payments and past-due fines may be registered with homeowner associations. Even after the loan payments are past due, HOAs may start a foreclosure process if the law permits it and the association’s rules, conditions, and restrictions allow it.

Alternatives for Selling a House With a Lien

Liens on property might be released by making a complete payment or working out a smaller settlement with lenders.  

• Discuss the obligation
• Make the initial lien payment
• Contest the debt
• Obtain a payback statement from your lenders
• Settle the lien with the profit of the transaction

Consult Tare Real Estate to Sell a Home with a Lien 

Selling a house with a lien can feel daunting, but Tare Real Estate can help. We understand the complexities of property liens in Texas. With our assistance, you receive the best possible outcome for your property on lien. From assessing the lien to negotiating with creditors and finding the right buyer, we handle it professionally and carefully.

Don’t let a lien stand in the way of selling your home. Take control of your real estate journey today. Consult Tare Real Estate to sell your home with a lien!

Conclusion

Selling a home with a lien is difficult but doable. Understanding the many types of property liens that may arise from unpaid taxes or late repayments is crucial. Numerous critical steps are required to ensure a smooth sale of a property like this one. Determining your home’s equity helps you determine whether the proceeds from the sale will be sufficient to pay down the loan. Collaborating with a real estate expert and staging your home with care will attract potential buyers.

Frequently Asked Questions (FAQs)