July 26, 2019Discovered that you have a property lien on your home? For some homeowners, this may come as a surprise. The good news is that you can still sell your property, even with a lien on it. The bad news is that a lien makes things more difficult, and it might take some negotiation with a buyer to get them to take on a property with a lien on it. Let’s explore what a lien is and how it affects the process of selling your home.
What Is A Lien? A property lien may be placed on your property in the event of an unpaid debt. Liens are different than personal debts. Personal debts are tied to you, specifically, regardless of where you are located or where you work. Property liens are tied to the property, and will remain even if the property is transferred to another party. Property liens are only removed once the debt has been paid. A property lien can be filed for a variety of reasons. Perhaps the most infamous type of lien is the tax lien, which the government can file after unpaid taxes. However, other creditors can file liens on your property as well, and they can even be filed for things such as failure to pay child support.
Why Are Liens Such A Hassle? Having a lien on your home often means that any type of home sale will run into lengthy delays. That is because the prospective
home buyer isn’t just considering taking on the property, they are also going to be responsible for taking on the lien. In most cases, r
eal estate agents recommend that you pay off any lien on the property before bringing the property to the market. In some instances, you may be able to pay off relatively small liens with the equity in your home after the event of a sale. However, if the lien amount is greater than your home equity, you may not be able to sell the property and cover the lien.
Selling A Home With A Property Lien If you’ve decided to sell a home with a property lien, you typically have two options–negotiate with the buyer, or negotiate with the lien issuing party. Convincing the buyer to take on the lien often isn’t a realistic option. But there are some scenarios where buyers will consider taking on a home with a lien, usually in regards to distressed properties. Negotiating with the issuing party is usually a better option. In a lot of cases, the lien can be removed by paying a portion of the debt, or by starting a payment plan to pay it off incrementally. If you need to sell a property with a lien fast, then 4 Brothers Buy Houses can help. 4 Brothers Buy Houses will purchase your property immediately for cash, so that you can walk away from your lien. Get a free, no obligation quote today and learn more about how you can avoid the lengthy process of negotiating with your lien issuer.
May 10, 2019
When you sign a mortgage, you are making a long term commitment. That commitment is legally binding and often lasts 25 to 30 years. Signing a mortgage means coming to an agreement with a lender, and then abiding by those terms for the length of the loan. Unfortunately, life circumstances change, as do market conditions. This can leave homeowners underwater and in need of help getting out of their mortgage. There are several different ways that homeowners can get out of their mortgage contract. Here are the options:
Rent The Property Out Renting the property
out can give you immediate cash flow that covers your mortgage payments. This may be an option if you have another place to live while you collect rent. If rental demand for properties like your own is high, then you may be able to charge enough to sort out your financial problems over the long term. You should talk with a financial professional to see if this route is feasible for you.
Conduct A Short Sale
If you are underwater, you can see if your bank will accept an amount that is lower than the outstanding loan balance. A short sale will ding your credit score, but it gives you more flexibility over handling the sale and that makes it more likely that you’ll be able to find a buyer. There is still the possibility that the bank will decline this option, or still try to collect the difference between the final sale price and the mortgage value from you.
Walk Away From The Mortgage
This is the most damaging option from a credit perspective. Walking away from a mortgage will do serious harm to your credit score and make it difficult to purchase another home for nearly a decade. However, some homeowners who are dealing with mortgage issues simply stop making mortgage payments and leave the property.
Deed Your Property To The Bank
This option allows homeowners to avoid foreclosure. It is technically called “deed in lieu,” a process in which your lender will forgive the amount owed on your mortgage in exchange for the deed to the property. The lender makes this money back by selling the home
Sell Your Home For Cash
When you are having issues with your mortgage, selling your home can be a frustrating process. It doesn’t have to be. If you need to get out from under a mortgage, then 4 Brothers Buy Homes can help. We specialize in helping Capitol Heights, MD residents sell their homes quickly, even when they are behind on their mortgage payments
. You don’t have to walk away from your mortgage or rent the property out. 4 Brothers Buy Homes will purchase your property for cash, giving you a way out from your mortgage. You can call today and get a free, no obligation estimate for your property.