Selling a house with a lien in Philadelphia can add even more pressure to an already stressful process. There will always be surprises when selling a house, both on the buying end and the selling end, and a lien is definitely one that can be a deal breaker. Just like anything else, if you take the proper steps to resolve any outstanding issues, you can save money and unneeded headaches.
What is a lien?
A lien is “the legal claim of one person upon the property of another person to secure the payment of a debt or the satisfaction of an obligation.” Simply put, if you owe money to certain entities, they can claim your property until the debt is paid. You can imagine why it would cause a problem selling a house with a lien in Philadelphia if someone else has a claim on it. Even if you aren’t planning on selling a house with a lien in Philadelphia, some liens can lead to foreclosure, so it is best to take care of them.
What types of property liens are there in Philadelphia?
Across the country, certain types of liens are more common than others. In Philadelphia for example, there are many properties with liens due to unpaid water bills. Some other common types of liens in Philadelphia include:
- licenses and inspections (L&I) liens
- mortgage liens
- gas liens
- real estate tax liens
- mechanic’s lien (a result of not paying a contractor or home material supplier)
- judgement lien (a result of not being able to pay the award of a lawsuit)
- unpaid child support lien
- IRS lien
Not all liens are created equal and without getting into the details, some liens can result in the foreclosure of your home. Certain liens can easily be negotiated by the current homeowner, while others almost always require an attorney and a CPA. It is not uncommon for long time homeowners to completely forget about an old debt, only to find out that they have a lien on their house when it comes time to sell. If you are unsure if you have a lien on your Philadelphia house, you can contact us for assistance.
Selling a House with a Lien in Philadelphia
As mentioned before, sometimes you may not even realize your property has a lien until you are already involved in the home selling process. The lien will have to be dealt with before the property sells. As you can imagine, many traditional home buyers will not stick around while you resolve and open liens. Fortunately, if you do have lien, Property Buyer Connect will help you through the process.
The first way of dealing with a lien is to pay it off. If, for example, you owe a contractor a relatively small amount of money for a completed job, you may be able to afford to just pay the amount. Another option is to include the amount of the lien into the settlement agreement. This will allow you to use some of the money from selling your home to satisfy the lien.
In some cases, Property Buyer Connect has been able to negotiate the amount of money owed down for people selling a house with a lien in Philadelphia. Other times, it may be worth it to hire a lawyer for assistance. There are many variables and unique situations when it comes to selling a house with a lien in Philadelphia. Property Buyer Connect is here for you to make the process simple and painless for you. Either way, if you believe you have liens on your Philadelphia property, contact us right away and we will be able to provide guidance in the right direction.