There have been times when a seller goes to transfer their home, and is shocked to find a lien waiting for them.
What is a lien?
- A lien is a declaration placed on an owner's home in order to settle a debt which could be accrued by owing child support, tax related debt, and many more.
Liens can come from several places. One example, is a lien against your home from an unpaid bill from a home improvement project. Another type is a Federal tax lien.
See these videos for examples on different types of liens:
As a homeowner or potential homeowner, it is important to educate yourself on this topic. The moral is, if you're thinking of selling, take a minute to speak with your mortgage company to ensure there are no unexpected surprises before putting your home on the market.
Facts about liens:
- In most cases, the seller has 30 days to clear up any liens.
- If the situation is not resolved quickly delays in closing can add additional hardship and costs for both the buyer and the seller.
- If the mortgage is paid off and a lien is found, it can still take up to two weeks to close and equity line of credit, which can be the cause of the lien placed against your home.
- Most banks want to ensure no last minute purchased have been made on your line of credit once the house is sold.
If you have further questions about this subject, please feel free to contact us!
For more information on this topic, also see this article about liens posted on Realtor.com.
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