You want to take advantage of our current seller’s market and decide to put your real estate in Lake Havasu on the market. You completed the necessary repairs. Your outdoor living space received a boost. After careful marketing, you found a buyer. While going through the escrow process, property liens were discovered. Uh-oh. Until these issues are resolved, your home sale is in limbo. If it doesn’t get resolved quickly, your buyer may start looking for something else on the Havasu real estate market. And they take their earnest money deposit with them. Don’t panic. There are ways to avoid this issue if you do your due diligence.
Property Liens & the Sale of Your Home
What is a Property Lien?
Basically, if you have unpaid debts, the person you owe can go to court to plead their case to put a lien on your real estate in Lake Havasu. This tends to be your biggest asset to attach. Until that debt is paid in full, you cannot legally sell your property. Therefore, it’s a good idea to search for liens on your property before you list it. Contact your county assessor’s office or have a title company run a search.
What to Do if You Have a Lien
If a search uncovers any liens, first, determine whether or not it is valid. If it was recorded in error, talk to your REALTOR® or title company about what you need to prove the error and how to fix it. However, if the lien actually does belong to you, you need to start to resolve the issue as soon as possible. Contact the lien holder (whoever filed the lien against you). Then, make arrangements to take care of the debt. Oftentimes, the lienholder agrees to take the money out of the proceeds from the sale of your real estate in Lake Havasu. In that case, discuss this with your title company right away. When buying a foreclosure with liens attached, those liens transfer to the new buyer (you). So, make sure you do your research before putting a bid in on a foreclosure. Otherwise, that bargain you thought fell into your lap may turn out to be a serious money pit.
There are three common types of liens filed against homeowners: a mechanic’s lien, a judgment lien, and a tax lien. Did you hire a general contractor to perform a kitchen remodel? Did an electrician or plumber fix outdated systems in your house? These companies may put a mechanic’s lien on your property as a backup in case you don’t pay for their services. If you hired an attorney or lost a court case, you might receive a judgment lien from the parties you owe until your debt is paid in full. Finally, a tax lien happens when you owe any property or back income taxes.
Bottom line: if you wish to sell your home on the Havasu real estate market, eliminate a lengthy delay by checking for property liens. If you find any, resolve the issue as soon as possible. Otherwise, you might lose your buyer altogether.
Alexis Steel – 928-303-2199
Keller Williams Arizona Living Realty
Search homes at: www.TheHavasuHome.com