If you’re a homeowner looking to sell a home in Los Angeles, the last thing you would wish is something that might jeopardize your real estate deal.
Liens are some of the most notorious issues that can frustrate the best laid-plans of either the seller or the buyer. A lien against the property is capable of throwing a monkey wrench into any pending or proposed real estate deal.
What is a lien?
What can I do to remove the jammed wrench and continue with the transaction?
Keep reading to find out all you need to know.
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What Is a Lien?
A lien is a financial claim on a house or property usually attached to your house’s title deed. These claims can exist if you owe money to someone. Whether it is a contractor or a bank, your property won’t be cleared for sale unless you pay off your debt.
There are several types of liens. We are going to cover the most basic types and provide you with an overview of what you should expect when listing your house.
The two main types of liens are voluntary or involuntary liens. Note that, although liens are regarded as the number one enemy of property owners, not all are necessarily bad. Some are normal and expected. Below is additional information into these two main types of liens.
A voluntary lien is simply a financial claim an individual has over another person’s property as security for payment of the owed money. Voluntary liens, especially on a mortgage, are pretty much assumed that they will be paid off once the deal on the house sell-off is closed.
Typically, they are a natural part of typical American homeownership and cannot stop a deal. Unlike other types of liens, banks are not unhappy with this type of active lien.
This is perhaps one of the most basic types of lien. A mortgage lien is regarded as voluntary if its property is used as security. The bank uses the property as collateral so that it can get compensated in case the borrower fails to pay the loan.
This type is almost the direct opposite of voluntary liens. It is because they arise without the owner’s consent. Whether the judge ruled a case against your settlement plan or you couldn’t afford to pay taxes, the fact is such setbacks can lead to unknown liens that might be bad for business.
This is perhaps one of the most common types of lien that the majority of home sellers and buyers don’t like to hear. It happens when a homeowner is unable to pay their property taxes.
The government will be forced to put a lien on their houses with an aim to force them to pay before the house is sold. Indeed, tax liens will halt a deal if the seller doesn’t have the funds to pay off the lien immediately.
The best way to ensure you avoid such setbacks is to perform a preliminary search to find out if there is a tax lien attached to the title.
Of course, if you are an agent in Los Angeles, finding out that there is a tax lien on your seller’s property would be bad news, especially if they don’t have money to pay it off right away.
For this reason, it is imperative to ensure you have a preliminary title report on the property you are thinking of listing.
Steps You Can Take to Clear the Way
As mentioned earlier, a lien is an official financial claim on a property. It also means that in the event you want to clear the way and proceed with the deal, the best way to handle it is either to pay off the debt or seek legal measures.
You can seek the services of a professional lawyer in Los Angeles. He or she will work in conjunction with companies such as escrow to negotiate it down or have the title cleared.
How to Easily Sell a House in Los Angeles With Liens
Without a doubt, liens can be a nightmare to anyone looking to strike a deal on a property. However, if you conduct a preliminary search on a property before listing it for sale, you will be prepared and act accordingly where necessary.
Are you planning to sell your house with Liens in LA, but you feel stuck? Check us out to learn how you can quickly seal a fair deal with Liens on your property in LA.