How to Manage Property Liens When Selling Your Boulder City House

Use the Proceeds from the Sale to Pay Off the Lien

Selling a house in Boulder City, NV can be a complicated process, especially when you discover that there’s a lien against it. A property lien is a legal claim made by a creditor against your property as collateral for unpaid debts. There are many different types of liens, which we’ll discuss below. While selling a house with a lien is possible, it does require certain steps, which include addressing the lien before or during the sale. In other words, you can’t proceed with a traditional sale and overlook the lien—this is something you’ll have to deal with.

Let’s walk you through the steps you need to take to handle property liens when attempting to sell a property in Boulder City.

Different Types of Property Liens 

Before you can address a lien, it helps to understand what type of lien is attached to your property. There are various types of liens that can impact the sale of your house, including:

• Mortgage liens. These are the most common liens and are placed by your mortgage lender. They must be paid off during the sale of your home. If you were to stop making payments on your home, your mortgage lender could foreclose on it.
• Tax liens. If you owe back taxes to the federal government or the state of Nevada, a tax lien could be placed on your property. These liens must be settled before the property can be sold.
• Mechanic’s liens. Contractors or suppliers who performed work or provided materials for your home but weren’t paid can place a mechanics lien on your property. Typically, a property cannot be sold until this lien is cleared up.
• Judgment liens. If a creditor sues you and wins, they can place a judgment lien on your property to secure payment. Most buyers will not purchase a property with a judgment lien on it—it usually has to be paid beforehand.

Different Types of Property Liens

Knowing what type of lien is on the property will determine the next steps you need to take to clear the lien and proceed with the sale of your Boulder City property.

Verify the Lien 

Once you’ve identified the lien, you have several options for addressing it. One option is to negotiate with the lienholder to reduce the amount owed. This can be effective if you have limited funds or if the sale price of your home won’t cover the total amount of the lien.

Contact the lienholder and explain your situation. Creditors are sometimes willing to negotiate, especially if it means they’ll recover at least a portion of what’s owed. If successful, you’ll be able to pay off the reduced lien amount at closing, allowing the sale to proceed.

Cash home buyers in Las Vegas

Use the Proceeds from the Sale to Pay Off the Lien

Most property liens can be paid off using the proceeds from the sale of your house. In a typical real estate transaction, any outstanding liens are paid from the sale proceeds before you receive your portion of the money. Here’s how the process works:

• During closing, the title company will collect funds from the buyer.
• The title company will use those funds to pay off any liens, including the mortgage, tax liens, or other outstanding debts.
• After the liens are settled, the remaining balance is transferred to you, the seller.

This method allows you to clear any outstanding debts and sell your home without paying out of pocket before the sale.

Consider a Short Sale if the Lien Amount Exceeds Your Home’s Value

If the lien on your property exceeds the current market value of your home, a short sale may be your best option. In a short sale, you sell your home for less than what you owe on the mortgage or lien, and the lienholder agrees to accept the reduced amount as payment in full.

While a short sale can be complex and may negatively impact your credit, it’s often a better alternative to foreclosure. To pursue a short sale, you’ll need to get approval from the lienholder and work with a real estate agent experienced in handling short sales.

Clear the Lien Before Listing the Property

If possible, clearing the lien before listing your property can simplify the sale process. This may involve paying off the lien using personal funds, taking out a loan to cover the amount owed, or reaching a settlement with the lienholder.

Las Vegas Cash Home Buyers Logo

By resolving the lien ahead of time, you can avoid complications during the sale and provide potential buyers with peace of mind knowing that the property is free and clear of any obstacles. A lien-free property is more attractive to buyers, which may help your home sell faster and for a higher price.

Disclose the Lien to Potential Buyers

It’s important to be transparent with potential buyers about any liens on your property. Failing to disclose this information can lead to legal issues later on, as buyers may back out of the deal if they discover the lien during the title search. Being upfront about the situation can help build trust with buyers and ensure that the sale moves forward smoothly.

Boulder City Nevada

Buyers who are aware of the lien may still be willing to purchase your home, especially if you’ve already taken steps to resolve the lien or have a plan in place to settle it before closing.

We’ll Buy Your Boulder City House—Even With a Lien Attached! 

Selling a house with a property lien in Boulder City is possible, but it requires careful planning and communication with creditors and potential buyers. By understanding the type of lien on your property and negotiating with creditors, you can successfully sell your home and clear the lien. We Buy Any Vegas House pays cash for houses, and we are comfortable working with your property even if it has a lien on it. To get a free cash offer for your home, contact us today.