How To Sell A House With Liens in Chicago

Sell A House With Liens

If you find yourself with a lien on your Chicago home, you might feel trapped, unsure of how to proceed without being able to sell the property or settle the lien. The good news is, you don’t have to remain stuck in your unwanted house. Learn more about how to sell a house with liens in our latest article and take the first step towards freeing yourself from this burden.

What Is A Lien?

According to Bankrate, a lien represents a claim placed on a property to fulfill a debt obligation. It serves as a method for lenders or creditors to recover owed amounts. A lien on your Chicago residence does not prevent you from selling it; rather, it necessitates clearing the lien beforehand.

Why Do You Get Them?

The most common types of liens include mechanic’s liens, judgment liens, and tax liens. Mechanic’s liens arise from contractors who have worked on your property and have not been paid. They often file a lien against your property to ensure they receive payment. A judgment lien occurs when you lose a court case and are required to pay damages to the opposing party. This type of lien is placed on your assets until the debt is satisfied. Tax liens are imposed by the government when you fail to pay your state or federal income taxes. Additionally, liens can be filed for unpaid alimony or child support, as directed by the court. If payments are not made as ordered, the receiving party can place a lien on the owing party’s property.

Check Your Title

Explore your county assessor and clerk’s office to investigate any existing liens on your property, especially if you plan to sell a house with liens. While a title company typically examines liens during the sale process, it’s wise to be proactive. Discovering a lien in your name that you were unaware of is not uncommon. It could have been mistakenly filed or done so without your consent. Avoid surprises when you decide to sell by conducting this research ahead of time.

Effects On Your Credit

If you’re looking to sell a house with liens, it’s important to understand how they can impact your credit. Once a lien is paid off, it can remain on your credit report for up to 7 years, while an unpaid lien may linger for 10 years. These entries can raise red flags for future creditors when you apply for a loan. Having liens on your credit report can portray you as a risky borrower, reducing your chances of approval.

Remedy The Situation

To resolve the situation swiftly, the quickest route is to settle the lien, although this can prove challenging. If you couldn’t settle the debt initially, you may still encounter difficulties. However, many lenders are willing to collaborate if you establish a repayment strategy. Some may agree to settle upon the sale of the property, while others may insist on payment prior to the sale. It’s important to note that mortgage liens, which are filed by your lender against your property, typically do not hinder the home sale. If your circumstances are complex or if you’re uncertain about addressing a lien, seek advice from an attorney.

Sell As-Is

It can be challenging to sell a house with liens in Chicago, but there’s a straightforward solution: selling directly to a buyer who is willing to handle the lien. At Heartland Funding Inc., we specialize in these situations, offering to pay off your lien and purchase your house for cash. Our goal is to make it easy for you to sell a house with liens or any other difficult challenges you are facing when trying to sell your Chicago home.

Are you ready to sell your Chicago house? We can help! Give us a call at (800)-255-8250!

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