Selling a house involves numerous challenges, even without a lien. You’re not just looking for a buyer but also dealing with tons of paperwork, inspections, negotiations, and more. If your house has a lien, the challenges you face multiply tenfold.
Massachusetts has specific rules about selling properties with liens. While this unexpected hurdle can leave you worried about how to continue, there are options you can explore to follow through with selling your home.
The truth about selling property with liens
Yes, you can sell a house with a lien. However, Massachusetts requires all liens to clear before finalizing any property sale. This protects buyers from inheriting previous owners’ debts or legal obligations.
Essentially, you need to address the lien before transferring property ownership. Buyers need a clear title to proceed with their purchase. Additionally, most lenders won’t approve mortgages for properties with outstanding liens, which limits your potential buyer pool.
Your options for selling a liened property
If your home has a lien, you need to address it before closing any sale. Options for clearing the lien include:
- Pay the lien in full: Use savings or home equity to clear the debt
- Negotiate a settlement: Work with lienholders to reduce the amount owed
- Contest invalid liens: Remove incorrect or expired claims through legal means
- Purchase a lien release bond: Obtain insurance to guarantee lienholder payment
- Use sale proceeds: Arrange to pay liens from your closing funds
- Seek cash buyers: Sell the house as-is to cash buyers or investors familiar with lien situations
Each option has different timeline and cost implications, so evaluate which path best suits your situation and needs.
Moving forward with your sale
A lien doesn’t mean you can’t sell your property but it does require careful planning and expert guidance. Following proper legal procedures helps ensure a smooth transfer of property ownership in Massachusetts. Consider seeking advice from a real estate attorney who can evaluate your situation and recommend the most practical solution for your needs.