How a Property Lien can Affect Your St. Louis Home Sale
There are many things that can get in the way of selling your St. Louis house. You have to choose the right asking price, find the right buyer, and pass the inspection. It can be a stressful process, and the last thing you need is one more thing standing in your way of getting to closing. However, a property lien can do just that.
A property lien is from an unpaid debt that that you owe. The lien is placed on the title of your St. Louis property to assure at the party owed money receives it before you are able to sell your house.
In order for a St. Louis house to sell and change owners, there needs to be a clear title. That means if you have liens on your property, you will be unable to sell your house until it is corrected.
What type of liens are there?
There are three main types of liens. The first is a mechanical lien. This one is placed on your property by a contractor that you owe money to. This could be a plumber, painter, contractor, or carpenter that has completed work at your house. They do this to assure that you will pay the money that you owe them.
The second type of lien is a judgement lien. This is something that is placed on your St. Louis house by the court if you owe money to someone and are unable to pay. This could also be from your attorney if you have not paid for the services that they have provided you.
The last type of lien is a tax lien. This type of lien is placed on your St. Louis house if you owe tax money to the federal, state, or county government regarding your home or property.
Why do liens matter?
A mortgage company needs to assure that the buyer is receiving a clear title on the St. Louis house and property. That means if there is a lien on your property, the deal will not be able to go through until you have it taken care of.
If you have a cash buyer, the deal could go through so long as the buyer is willing to accept it with the liens. However, as soon as the buyer owns the St. Louis house, the lien becomes their responsibility to correct. Most buyers are not going to be interested in doing this.
Therefore, refusing to take care of a lien on your property can stand in the way of your ability to sell your house.
How to get a lien removed
If you discover that you have a lien on your title, then you need to get to work removing it. Your first step is to collect the information and details about the lien. If you discover that the lien is incorrectly on your title and that it has already been paid, you can submit proof of payment to have the lien removed. However, if the lien is accurate, you will need to pay the debt in order to have it removed.
If you have purchased a St. Louis house from an auction or a foreclosure there is a chance that it may have liens on the title. Since you are now the owner of the St. Louis house, they’re your responsibility. So even if you are not the reason that the lien is on the property, if you are the owner, you’re the one that needs to have it removed.
The earlier you get started on the process the better it will be. Do a title search on your St. Louis house prior to listing it on the market.
Liens on property are deal killers for buyers, so you want to have this taken care of before you list the property. You will be thankful that you did this once you have accepted an offer on the house and the transaction is able to move smoothly through closing.