If you have a lien on your St. Louis house, you may feel as though you have a weight on your shoulders. The good news is that if you own a house that the lien is attached to, you have some options! Learn more about how to sell a house with liens in our latest post. This post will help you understand How To Sell a House with Liens in St. Louis, MO.
What Is A Lien?
According to Investopedia:
“A lien is a legal right granted by the owner of property, by a law or otherwise acquired by a creditor. A lien serves to guarantee an underlying obligation, such as the repayment of a loan. If the underlying obligation is not satisfied, the creditor may be able to seize the asset that is the subject of the lien.”
That’s a very technical definition. An easier way to say this is that a lien allows a creditor to lock down the property of a borrower so the borrower cannot sell the property without paying back the debt.
Types of Liens Used in St. Louis, MO
Mechanics lien: commonly used by contractors, repair-men, painters, do work on your home and are not paid, they can put this type of lien in place to secure payment.
Judgment lien: if you are sued by a creditor and there is a monetary judgment filed against you, the creditor can file this type of lien on your home until the debt is repaid.
Tax lien: This can come from not paying any state or federal taxes. Most commonly a lien is placed on the house by local government because of unpaid property taxes.
Why Do You Get Liens On Your Property?
A lien can be filed against you by a creditor any time there is unpaid debt. One can even be filed in the case of unpaid alimony or child support. If payments aren’t being made as directed by the court, the receiving party can file a lien against the owing parties property.
Check The Title To Your Property
Check out the county assessor website to search for liens on your property. The attorney/title company will check for liens at the time of sale, but you want to be prepared before that. It is not uncommon to find a lien in your name you weren’t aware of. It might have been put in your name erroneously or filed without your knowledge. You don’t want to be surprised when you decide to sell.
To check liens on property located in St. Louis County, MO, visit the county assessor’s website: http://revenue.stlouisco.com/IAS/
Effects On Your Credit
Liens can stay on your credit reports for up to ten years. Even if the liens are paid off, there can still be derogatories that linger on your report for several years. This will affect your ability to rent an apartment/house, buy a car, or get other types of credit.
How To Fix Liens On Your Property
If you have a lien on your house then there is a debt that needs to be repaid. If you don’t have the money to pay off the lien you may be able to work out a repayment plan with the creditor. Many people will accept repayment upon the sale of the house. Other creditors will demand payment before the house is sold. Talk to an attorney if your situation is complicated or if you are unsure about what to do to satisfy a lien.
Sell As-Is To A Direct Buyer
A great way to sell a house with liens in St. Louis is to sell your house to a direct buyer. Many home buyers will opt to take financial responsibility for the lien, thus enabling you to sell the house. Chris Buys Homes in St. Louis will help you pay off your lien and buy your house for cash. We can help with liens or any other difficult challenges you are facing when trying to sell your St. Louis home.