When selling a home in a short sale, there may be tax liens or other liens against the property — debts that must be paid upon the sale of the property. This is often the case because individuals who pursue a short sale are often in financial distress.
Short Sale FAQs – Property Liens
Liens can complicate or delay a short sale. Liens may take two forms. Some liens are the result of a loan where the home is used as collateral, such as in the case of a second mortgage. Other liens may be placed in order to satisfy a debt such as property taxes or housing association (HOA) dues.
When other lenders are involved, there is often a fair amount of negotiation required in order for the liens to be released, thereby allowing for the sale of the property. Of course all of the lenders want to get paid, so there is often negotiation required and this can result in a lengthy sale process.
Other liens such as HOA dues and taxes can also pose a problem, but these liens generally pose a less serious obstacle as the amount owed is generally less.
In some cases, the lien holder may accept a payment arrangement or they may accept a portion of the amount owed in exchange for removing the lien against the property.
In other cases, the primary lender may opt to pay a lien holder in full or the buyer may agree to pay off the lien in order to complete the sale.
Some liens may involve a discharge of some or all of the debt, which is in essence, forgiven.
Trust Your Home Sale to Short Sale Specialist Kristine Zelazo
There are a number of unique steps and processes involved when buying a short sale property or when selling your home through a short sale instead of a traditional real estate transaction. You’ll have lots of advantages in this regard when you work with a short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Questions? Call 800.664.0616, x802.