A home may stand out to a buyer who decides to purchase it. Things might hit a stumbling block upon discovering concerning problems with the property. A leaky roof or other repair-related issues may not be too challenging, but what happens when a Pennsylvania home has liens on it?
Liens on a property
There may be a financial obligation that someone must legally pay. When the person does not pay what is due, the creditor could go to court to procure a lien, a claim against assets. When a property has a lien, the house has a debt obligation attached to it.
Liens might derive from owing local or federal taxes or losing a lawsuit. A mortgage comes with a lien, allowing the bank to foreclose when someone doesn’t pay the loan. Liens reflect problems and concerns for the owner, and a buyer might run into a purchasing roadblock upon discovering a lien exists.
Home buying and addressing a lien
A seller could disclose a lien early in the process, allowing the buyer to address the matter. Or, the seller may not know a lien exists, and the title search uncovers one. Dealing with the lien becomes unavoidable for many since mortgage lenders may not approve a loan on a property with outstanding liens.
A simple solution? Pay the liens. More specifically, the seller could indirectly pay the lien by reducing the purchase price. Dropping a $200,000 agreed-upon price to $190,000 allows the buyer to pay the lien and recoup the $10,000 by getting a better deal on the house.
