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336. How To Sell A House With Liens in Metro Detroit

If you have a lien on your Metro Detroit house, you may feel stuck if you can’t sell the house or pay off the lien. The good news is, you don’t have to feel stuck in your unwanted house any longer. Learn more about how to sell your house in Metro Detroit with liens in our latest post.

What Is A Lien?

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 Metro Detroit house doesn’t mean you can’t sell it. It simply means you need to satisfy the lien before doing so.

Why Do Lines Get Attached To a Property?

Liens can be quite a headache for homeowners, and understanding the different types is essential. The most common types of liens you might encounter include mechanic’s liens, judgment liens, and tax liens.

Mechanic’s liens are often issued by contractors or subcontractors who have worked on your home. If they haven’t been paid for their services, they can file a lien against your property to ensure they receive compensation. This type of lien essentially acts as a claim against your property until the debt is settled, which can complicate future sales or refinancing efforts.

Judgment liens come into play when you lose a court case and are ordered to pay a certain amount to another party. Once the judgment is rendered, a lien can be filed against your assets, including your home, until the payment is made in full. This can be particularly stressful, as it may hinder your ability to sell or refinance the property until the lien is resolved.

Tax liens are issued when you fail to pay your state or federal income taxes. The government has the right to place a lien on your property to secure the amount owed, which can accumulate interest and penalties if not addressed promptly. Failing to pay taxes not only affects your credit but can also lead to more severe consequences, including foreclosure.

Interestingly, liens can also be filed in cases of unpaid alimony or child support. If someone isn’t making the required payments as directed by the court, the receiving party has the option to file a lien against the owing party’s property, further complicating financial matters.
Understanding these liens and how they can affect your property is crucial for any homeowner. If you find yourself facing a lien, it’s essential to address it promptly to avoid complications down the road!

How To Sell A House With Liens in Metro Detroit

Check Your Title

Check out your county assessor and clerk to search for liens on your property. 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. 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.

Effects On Your Credit In Michigan

It’s important to know that even after a lien is paid off, it can still have lingering effects on your credit report. A paid-off lien can stay on your report for up to seven years, while an unpaid lien can stick around for ten years. This extended presence on your credit history can raise red flags for potential creditors when you’re trying to borrow money.

Having liens on your credit report can signal to lenders that you may be a risky borrower. This perception can significantly lower your chances of getting approved for loans or credit. Lenders often view unpaid debts as indicators of financial instability, which can lead them to deny your application or offer less favorable terms, such as higher interest rates.

If you’re facing a lien, it’s essential to address it proactively. Whether that means negotiating a payment plan or seeking assistance to settle the debt, taking steps to resolve the issue can help improve your credit standing over time. Once the lien is resolved, make sure to keep records of the payment, as this can be useful if you need to dispute any lingering information on your credit report in the future.

Remedy The Situation

The quickest way to resolve a lien is to pay it off, but as many people know, that can be easier said than done. If you struggled to pay off the debt in the first place, you might find yourself in a similar predicament. However, don’t lose hope—many lenders are willing to work with you as long as you develop a feasible repayment plan.

In some cases, creditors may agree to receive payment when the house is sold, allowing you to address the lien without needing to come up with the full amount upfront. On the other hand, some creditors might insist on payment before the sale of the house can proceed, which can complicate matters.

It’s worth noting that mortgage liens, which are filed against your property by your lender, typically won’t impede the sale of your home. This is because the lender’s interest is secured by the property itself, meaning they are paid first from the proceeds of the sale.

If your situation is complicated or you’re uncertain about the best way to handle a lien, it’s always wise to consult with an attorney. They can provide guidance tailored to your circumstances and help you navigate the complexities of resolving a lien effectively. Getting professional advice can help you avoid potential pitfalls and ensure that you’re making informed decisions every step of the way.

Sell  Your MI Property As-Is

A great way to sell a house with liens in Metro Detroit, 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.

We Buy Houses In Metro Detroit

Metro Detroit Homebuyer 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 Metro Detroit home.

Are you ready to sell a Metro Detroit house? We can help! Send us a message or give us a call today! (313) 246-4551

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