In many cases, Lexington homeowners have to take out a mortgage loan to purchase a home. While many go on to pay off these mortgages, some experience financial difficulty that results in falling behind on mortgage payments. If you’ve missed a couple of your mortgage payments, your lender could file a lien on your Lexington home.
Selling your home is already a difficult task, but when concerns such as this arise, you may be wondering if you could still sell your Lexington, KY home with a lien. It could be challenging to sell a property with liens depending on its type and status, but you can still sell your Lexington home. Finding a buyer willing to go through the additional formalities required to purchase a home with a lien can also be another challenge. Here is what you need to know when selling your Lexington, KY home with a lien.
What Is a Lien?
If you can’t make your mortgage payments or any type of loan repayment, your creditor has a legal right to seize your assets as a form of collateral payment. Liens safeguard a lender’s interests if you file for bankruptcy or are unable to pay your loan. In addition to real estate holdings, liens may be put on other assets such as your bank account. Once seized, lenders will be able to auction off your property or sell it. If you applied for a voluntary lien such as a mortgage, your property would have a lien until you no longer owe your lender.
Even though liens aren’t always a bad thing, failure to meet your payments can negatively affect your credit score and financial stability. Liens in the form of mortgages are voluntary since it gives you a loan to purchase your home. However, if you have defaulted on a loan and your creditor initiates legal action to recover your outstanding debts, they can put an involuntary lien on your property. Your financial situation going forwards can be heavily impacted by this.
Can I Sell My Property with A Lien?
While you can still sell your Lexington home with a lien, it won’t be easy. On top of the narrow timeframe you have, not many buyers on the market are interested in the added costs and steps that come with buying property that has a lien. Here are some options you can consider:
Pay Off Your Lien
You can choose to settle your payments before listing your home on the market to avoid the complications of selling with a lien. Obtaining a personal loan from someone you trust or someone you know will allow you to gain extra cash and deal with the lien and pay off your debts. The Lexington property can subsequently be sold, with a portion of your revenue going toward paying your personal loan.
Transfer Your Lien
If you choose to sell your Lexington home on the market while there’s a lien on it, your potential buyers will have to be aware of the existing lien, which is a matter of public record.
There may be a buyer who is willing to deal with the lien depending on your property condition, location, and price. However, this places extra responsibilities that the buyer will need to take on. Because of this, some buyers might decide not to make an offer on your home or use this as leverage to lower the asking price.
Sell to a Reliable Home Buyer
Finding a buyer on the market ready to take on your outstanding debt can prove to be challenging. Selling your Lexington home to a reputable cash home buyer such as Rylo Homes is a quicker and easier option for dealing with homes with liens.
We buy homes no matter the state of your property or any problems it might have — including liens. Our home buying process will swiftly get you a fair cash offer. We will take care of your unwanted property and help you deal with your lien. At Rylo Homes, we understand your position and can help you regain financial stability by selling your property through a quick and easy sale.
Need to Learn More?
The longer you leave your liens unattended will negatively affect the ownership of your home, your credit score, and your financial stability. Waste no more time by contacting Rylo Homes, the reliable cash home buyer in Lexington, KY, and learn more about our home buying process. Get a fair cash offer in less than 72 hours and sell your home in Lexington, KY fast.
Get in touch with Rylo Homes today.
