Property Liens That Can Stop A Sale
One of the most common reasons for a home sale to fall through is the presence of property liens. Often the sellers are not even aware they have a lien on their home and the delay caused by having them removed can cause a qualified buyer to look elsewhere.
Here are a few liens which can derail your closing.
- Mechanics Lien – A contractor may place a mechanics lien on your home to make sure they are paid after a home project.
- Divorce Lien – Even if you and your spouse have agreed on the sale of the home, the court may need to approve the sale before the lien can be removed.
- Homeowner’s Association – Past due HOA payments and assessments can lead to a lien on the home.
- IRS and Property Taxes – A government legal claim against your property when you neglect or fail to pay a tax debt.
- Judgment Liens – Is a court ruling that gives a creditor the right to take possession of a debtor’s real or personal property if the debtor fails to fulfill his or her contractual obligations.
- Credit Card Liens – If you default on a credit card and the issuers get a judgment, they can attach a lien to your property.
Liens must be dealt with before a home can change title. Often the lienholder will negotiate the payment, but others will want full payment before releasing the hold. Either way, dealing with liens can take time and money.
Please contact us and one of our team members can guide you through this process.