It is technically possible to sell a home with a lien, but depending on the type of lien and the amount of debt owed, a lien could prevent the sale.
Lifting a lien can be time-consuming, so it is advisable to resolve any liens before selling a home.
What is a lien?
A lien is a legal claim for a debt. A lien on your home is a document filed by a creditor with a county office that makes a claim against your property for the money you owe them.
What types of liens are possible?
There are three types of liens that are most common on real estate property. A consensual lien is a voluntary lien that you entered into to help finance something, like the mortgage for your home. A statutory lien is a lien made by creditors for nonpayment of large amounts of money, like outstanding medical bills. A judgment lien is a lien made by a court for things like unpaid taxes or unpaid settlements from a legal case.
How do you lift a lien?
Once you make sure the lien is valid, pay off the debt. Once you have paid the debt, have the creditor sign a release of lien form. File the release of the lien with the county office that holds the lien. Keep a copy is the release of the lien for your records.
It is possible for there to be a lien on your home without you even knowing. For example, bills you were unaware were not paid in full. You should search for liens on your home before beginning the selling process so that you can take care of them before they cause any delays.
