A lien is basically another party’s right to take over your property because of a debt that hasn’t been paid. Liens come in all sizes and forms: from contractors whose work on your house wasn’t paid for to property taxes that haven’t been paid (and everything in between), being notified that there’s a lien on your property can be scary. But it doesn’t mean that you’re completely powerless. Resolving a lien point-blank is generally simple: you just need to pay off the amount you owe and make sure it doesn’t happen again in the future. However, if you don’t have the budget to pay off what could potentially be thousands of dollars in one go, your next best option is to consider selling the property.
How Should You Sell?
Selling your property on your terms is a solid idea for a few reasons: first, it means that you control how and when it’s done, so that you can figure out your plans for the future without the pressure, inconveniences, and credit destruction of a foreclosure. Secondly, selling your house allows you to put some of the money you get toward paying off the lien so that you can be free and clear of the issue. Now, one question remains: do you sell your house on the market or do you sell it for cash?
Selling your house on the market is a great option if you have something that many lienholders don’t: time. The average real estate process with an agent and escrow takes about three months in Florida. During this time, pretty much anything can happen. Most conventional buyers will be hesitant, at best, about negotiating the cost of a lien into the closing process, so it’s important to remember that this will factor into your house’s perceived value and sale time. If you decide to go the conventional real estate route with a lien on your property, be prepared for a longer sale period – and more negotiations – than you would have otherwise.
Selling For Cash
Selling your house for cash allows you to circumvent all of the inconveniences of the conventional real estate process. A cash buyer is unlikely to care whether there is a lien on the property; they will give you a fair offer based on your home’s market standing and physical conditions, and you’ll be free to use some of that money to pay off your lien and move forward without its weight on your shoulders. Additionally, cash sales are much faster on average than conventional real estate listings. For example, at PlacePitch, cash sales can be done in as little as one business day. If you’re low on time and on options, selling your house for cash is a fantastic way to make sure that you’re in control and able to move forward on your terms.