Selling a house invites every beast under the bed to show its face — and the worst house mortgage is the one beast you can consider before closing the contract.
Lien is the right to keep one’s property until the debt is paid. As a feature on a glossy report card, securities are some of the errors that appear in a property title search, which is the basis for a background check on your legal claim for a piece of property.
Title problems account for 11% of closure delays, while Allied Title and Escrow report that more than one-third of property deals, the title company involved must do “extraordinary work” to deal with title issues that often go back 50 years or more. Therefore, problems with the title arise, and if you have one or more offenses against your title, you will have to deal with it before proceeding with the sale.
We have reviewed the latest reports from the title deeds and consulted with an 18-year-old real estate agent with a clearing experience of the transaction to bring you this guide to:
- The most common bonds found in the title search process
- How you can resolve liens against your property to keep the contract moving forward
- Prevention strategies to avoid topic issues in the first place
Material Man Lien for Unpaid contract work on the house
“The most common and easiest to deal with is a material man’s lien,” says Steffany Farmer, a top Savannah, GA real estate agent who’s worked through over 775 real estate transactions.
“A material man’s lien comes from a contractor who has worked on the home or someone who has provided materials for the home within the last 90 days and they’ve not been paid.”
In most cases, to resolve the matter immediately, you can simply pay off the debt and move on. If you can’t afford to pay off the debt right away, your agent may negotiate a debt settlement for your closing costs — but you plan to deduct the cost from your home sale.
Homeowners Association (HOA) False or Unpaid Rental Liability
Homeowners’ organizations can lie about your property if you fail to pay or break the law.
“If you lived in your area and you should not cut down trees without permission from your association and come in and take out two trees, they could charge you for each tree,” said Farmer.
As a responsible person, the easiest way to resolve these obligations and proceed with the sale of your home is to immediately pay the lien.
Department of Revenue Lien
The responsibility of the Treasury in your area is the failure to pay state taxes. This is one of the most important guarantees and you may need to bring in a CPA or a lawyer to help clean it up.
If you can’t afford to pay for a lie, work with your CPA and your attorney to negotiate with the Treasury to pay only part of the tax due.
“In the worst-case scenario, you could put a collateral in place,” Farmer said. “Suppose this is your first home and you have a rental home. If there is a lie in your main home, perhaps the Treasury will agree to take that case to your lease.”
Contact a real estate attorney and CPA to manage the Revenue Department.
The worst debt is the Internal Revenue Service (IRS) collateral, which arises from the non-payment of corporate taxes. An attorney and CPA are almost always required to resolve IRS lies.
According to Farmer, the IRS is more important than all other securities. As a unitary government, it is difficult and time-consuming to resolve.
“I had one dealer who held a $ 45,000 IRS bond, and I know he didn’t get $ 45,000 since closing,” Farmer said. “The closing attorney was very active, and got the IRS to pay $ 12,000 and then take the whole case to the employer’s place.”
Due to significant delays, the buyer has supported the sale. When the IRS lien was finally resolved, they returned home to the market and started the process again.
“That’s how I learned the difference between an average attorney and a good one,” says Farmer.
Four Ways to Resolve Your Lien
Here are 4 ways to resolve your lien and get your home sale to the finish line:
1. Pay Off Outstanding Debts Immediately
The best way to avoid further delays in closing lies is to clear and delete your article as soon as possible.
2. Use Your Home Sale Proceeds to Cover What You Can’t Afford
If you can’t afford to pay a lien out of pocket, you can use your home sales money. Your real estate agent will write you this down payment agreement. In closing, the lien will be deducted for your benefit.
3. Debate the Lien With the Help of a Lawyer
Often, resolving title deeds simply means ensuring that the debt is satisfied and properly recorded, such as when customers clear a mistake in a credit report.
You will have to pay for a lawyer, but they can save you thousands of dollars and keep your home sales up to date. In some cases, an attorney can spread liens in one of your properties to save your home sale.
4. Remove the Bond
If you can’t afford to pay for the lien, you can issue a bond to cover the costs. According to Farmer, this is an expensive process but the bond serves as false collateral to keep you from selling the property.
5. Do you Need a Lawyer to Solve the Lies?
To get a big lie, you will need to hire a lawyer and sometimes a CPA to help you clear your topic. If you are going to dispute a lien, you should hire a lawyer who will help you prove the mistake wrong. With regular debts such as unpaid services or fees, you can pay off the debt and continue selling without the help of an attorney.
Issues of the topic require lawyers with some experience in real estate, so a criminal lawyer will not be helpful.
3 Ways to Prevent Title Issues and Delays in Closing
Get Title Deeds When you Buy a Home
Many buyers get title deeds when they buy a home. This is done to protect them from any liens that may be in the title under the previous homeowner. Although rare, title companies sometimes ignore title obligations. When the contract is closed, the title and liens are transferred to the new owner. Title insurance to protect you from paying obligations that do not belong to you.
Pay Taxes on Time
An easy way to avoid obligations on the title of your property is to pay everything on time. While it is easier said than done, you can avoid closing delays and problems that prevent the sale of your home.
If you suspect that there may be a lien in your article, tell your real estate agent right away.
According to Farmer, every real estate agent needs to ask if you know about title arrangements. Catching lien prematurely can save much-needed time when closing.
“We are not lawyers. We can’t give legal advice, but at least when we hear what kind of lies, we may need to get a CPA or their lawyer to clear it,” said Farmer.