Selling a House with a Lien in Texas in 2024

Introduction

Mortgages are common for property, but missed payments generate liens on your house. Liens often complicate the process of selling a home in Texas. If you're planning to move, understand whether selling a house with a lien is possible or whether paying off the mortgage first is necessary. The situation may vary depending on the lien type.

You may have another lien on your property apart from the mortgage lien. In certain situations, your ability to sell can depend on the buyer's willingness to pay off your lien.

What Is a Property in Lien?

A lien on a property is an ownership claim from a lender or creditor on your home. You have missed a monthly payment or refused to pay anymore. Creditors have the authority to seize the assets and sell them independently. However, there are limits to what a lienholder can do with an investment. When homeowners aim to sell a house with a lien, they face significant hurdles.

Tax Lien Laws in Texas

Property taxes are essential to pay under Texas state laws. Outstanding taxes become a lien on the homeowner's property. On the other hand, federal tax liens are subject to federal law rather than Texas law. Your property is subject to a property tax or mortgage lien in Texas.

If you owe money and fall short on property taxes, your lender may seize the property. But if you pay your property taxes, your home will be foreclosed immediately. You've multiple options to keep your residence and settle any outstanding taxes.

If you have unpaid taxes and cannot settle your debt, the lender may assist you in creating a payment schedule and even use the property as collateral.

When taxes are past due, the legal system typically files a judgment against the property to begin foreclosure. But, if a homeowner pays the arrears on their taxes, interest, and other fees, they can avoid foreclosure and be eligible for a lien release.

Can You Sell a Property in Lien Texas?

Selling a house with a lien in Texas is possible. You can sell a home with a lien whether you live in Texas or another state. Arrange enough money from the sale to pay off the outstanding debt. Locate a buyer willing to pay the remaining lien fees if the sale isn't big enough to pay off the debt.

To deal with such situations, find a real estate investor ready to buy the property in Texas for a reasonable cash offer. In addition, if you have little saved up, the cash offer must include enough equity to cover relocation and closing costs.

How to Sell a Property in Lien in Texas?

Selling a property under lien begins with the same process as any other real estate deal. After staging your property, hire a real estate agent and a professional photographer. With the help of your agent, put your house for sale.

After finding a buyer and receiving an offer on your house, engage a real estate attorney to document the process. You will experience the complexities involved in selling a house with a lien. There are three main ways you can use to sell the property:

Use the money from the house sale to repay the debt

●     Sell to a cash home buyer

●     selling a house as is in Texas

●     Use House Sale for Repayment

If the equity on your property is high enough, you should maintain enough profit left over to pay off your lien debt. You can pay off your debt using the money from the sale of your house.

Hold a clear title to the property if you plan to use the proceeds from the house sale to pay off the lien debt. This implies all liens and costs must be settled before the house is returned to the new owners.

You have two options: settle the debt fully or attempt to work out a lower payment plan with the lender. Get paperwork from the lender proving the release of a lien.

Sell House to Cash Home Buyer

You can also sell your property to cash buyers in Houston, Austin, or other parts of Texas. The cash house buyer may acquire the property with the lien attached. If you still need to, you can ensure the cash offer is sufficient to settle the debt when the house is sold. You can close the deal fast without paying closing costs and maintenance fees.

Sell House As-Is with Lien Attached

Selling a house with a lien is still possible, but you can do it as is. In such a scenario, the lien debt must be paid off after closing a deal. You can save money on repairs, and the time it takes to renew your home by selling it as-is. However, you can organize the space and arrange the furnishings to attract more buyers to the house.

Sell Your House With a Lien To Capital Advisors

Selling a house with a lien is challenging, but Capital Advisors can simplify it. Are you facing financial difficulties, dealing with property disputes, or want to move forward?

Capital Advisors buys properties with liens, offering fair and competitive cash offers. We assist you through each step, ensuring a smooth transaction.

Why wait? Contact Capital Advisors today and take the first step towards a fresh start. Don't let a lien hold you back any longer!

Conclusion

Selling a house with a lien is a complex but manageable process. Understanding the types of property liens in Texas, whether from missed payments or unpaid taxes, is crucial. Selling such a property involves several critical steps to ensure a smooth transaction.

First, assessing the equity in your home can help determine if the sale proceeds will cover the outstanding debt. Engaging with a real estate agent and staging your home properly can attract potential buyers. Additionally, enlisting the help of a real estate attorney can streamline the process.

Frequently Asked Questions

Can you sell a house in Texas with proper liens?

Before you sell, you must contest or settle the lien because you can only sell something you entirely own if you pay off your debts.

How long can a lien stay on a property in Texas?

A ten-year judgment lien is in effect.

How do I remove a lien on a property in Texas?

The person or entity claiming the lien must sign a document releasing it so it can be removed or cleared from Texas property.

How can I contact Capital Advisors to sell a Texas home?

Making an offer to sell your home to Capital Advisors TX is a terrific idea. For a memorable encounter with home sales, contact us now!

Who should I consult to sell my house in Texas?

Consulting a trusted real estate brand like Capital Advisors reduces the stress of listing and selling your property.