Selling a house is a complex process, and it becomes more intimating when a lien is attached to the property. But like other aspects of life, the more you know less fearful you become. A lien primarily defines that there is a financial constrain, claim on the property. A bank or mortgage company may claim the title of the land, property. This litigation makes it complicated to sell the property. Having a lien on the property adversely impact your line of credit. There are various types of lien; a mortgage is the most common one.
Lien; a deal breaker
You may have taken a home loan from a bank or other financial institution. After recurring default of installments, the lender may pit a mortgage lien on the house. A second mortgage or home loan will make the lender a supplementary lien holder. Until all the financial obligations are met, or new favorable terms and conditions are drafted, the liens stay in effect. In simple terms, the creditors have the first right to the property until the financial obligations are fulfilled. You need to get clear of this house lien as fast as possible, to sell the property. Otherwise, there could be a deal breaker during the sale deed.
Types of lien
When you take a home loan from a bank, the lender files for a house lien in the concerned land revenue registration office. This remains effective till the loan is cleared and NOC is obtained. Apart from mortgage lien, property tax, unpaid construction works are other common types of lien. Multiple liens have a priority basis on the chronology of the filling. The first mortgage company has precedence over the second. If you clear the debt of the first mortgage, the second comes to the forefront. If there is a tax lien, it gets priority over others. It is essential to clear liens to sell the property.
You can sell a house with a lien
It is crucial to search for a house lien prior to the purchase or sale of a property. All liens are filled in the jurisdiction where the property is located. Log on to the local land registration office to get relevant information about the property. From the tax assessment office, you will get all related documents and information. If the county does not have a website, a physical visit is required. After you have the information, the next step is to resolve it. Contact the lien holder asks for the final amount, including the interest and penalties if applicable. After you pay off the debt, the lien holder cancels the contract, subject to his willingness and paper works regarding it. Insist on the endorsement of house lien cancellation.
You can sell a house with a lien, but the process is arduous and distressing. If you want to sell the house with a lien quickly, then log on to https://mrhomebuyer.ca/. They have all the specialized skill of negotiating, which gives you a chance to sell the property and move on with life. A professional home buyer may purchase a property with a lien or a judgment against the property or vendor. Regardless of the lien exceed the property valuation, you can sell a house with a lien.