If you have a lien on your house in Alabama, you may have the feeling of being stuck if you can’t sell the house or pay off the lien. There is good news, you don’t have to feel stuck or trapped in your unwanted house any longer. Learn more about how to sell a house with liens in The Aida Group’s latest post.
What Is A Lien?
Well According to Bankrate, “a lien is a claim made on a property in order to satisfy a debt. It is a way for a lender or creditor to recoup what is owed to them”. Having a lien on your Alabama house doesn’t mean you can’t sell it. It simply means you need to satisfy the lien before doing so.
How Do You Get Them?
The most common types of liens on houses are mechanic’s liens, judgment liens, and tax liens. A Mechanic’s lien come from contractors who have work on your house. They will most often issue a lien on your house to ensure they are paid for their work. Now a judgment lien comes when you lose a court case and need to pay someone else for a loss. A judgment lien will be filed(in court) against your assets until the payment is received in full. Lastly a tax lien may be issued when you do not pay your state or federal income taxes. A lien can even be filed in the case of unpaid alimony or child support. If payments aren’t being made as directed by the court, the receiving party can file a lien against the owing parties property.
How To Check Your Title
All You need to do is check out your county assessor and clerk to search for liens on your property. Also a title company will check for liens at the time of sale, but you want to be prepared before that. It is not uncommon to find a lien in your name you weren’t aware of or aren’t yours. It might have been put in your name erroneously or filed without your knowledge. You don’t want to be surprised when you decide to sell because it may take some time to get them resolved.
Effects On Your Credit
Just remember a paid off lien ( or satisfied lien) will linger around on your credit report for up to 7 years. wile an unpaid lien will stick around for 10. These can be big red flags to future creditors when you are attempting to borrow money or get a loan. Having liens on your credit report will make you appear to be a high risk borrower and may lower your odds of being approved.
How Do I Remedy The Situation
The fastest and most efficient way to remedy the situation is of course to pay off the lien. This is most often easier said than done. If you weren’t able to pay off the debt in the first place, you might still have trouble pay for it now. Many lenders will work with you so long as you make a plan for repayment. Many people will accept repayment plans upon the sale of the house. Other creditors will demand payment before the house is sold. Mortgage liens, filed against your property by your lender, won’t affect the sale of the home at all. Talk to an attorney if your situation is complicated or if you are unsure about how to proceed with satisfying a lien.
Even Better -> Sell As-Is
A great way to sell a house with liens in Alabama, is to sell your house to a direct buyer. Many home buyers will opt to take financial responsibility for the lien, thus enabling you to sell the house. The Aida Group will help you pay off your lien and buy your house for cash. We can help with liens or any other difficult challenges you are facing when trying to sell your Alabama home.