A real estate lien can be a major roadblock when trying to sell your house in Maryland. Whether it’s a tax lien, judgment lien, or a lien from unpaid debts, it must be cleared before you can transfer ownership. If you are looking for a solution, understanding how to remove the lien from your property is essential.
This guide will explain the different types of liens, how to remove them, and what steps you can take to sell your property without delays.
What Is a Real Estate Lien?
A lien is a legal claim placed on a property by a creditor as security for an unpaid debt. It essentially prevents the property owner from selling or refinancing the home until the debt is settled. The type of lien you have and how it was placed on your home determines the process of removing it.
A tax lien is imposed by the government when property taxes or income taxes are unpaid. A judgment lien results from a court ruling against you, often from unpaid loans, lawsuits, or credit card debt. There are also voluntary liens, like a mortgage, which must be satisfied before selling the property.
Knowing which type of lien is on your home will help determine the best way to remove it.
Ways to Remove a Lien from Your Property
Removing a real estate lien in Maryland involves different steps depending on the type of lien. Here’s how to address them:
1. Pay Off the Debt
The fastest way to remove the lien is by paying the debt in full. Once the debt is satisfied, the creditor must file a release of lien form with the county recorder’s office in the county where the property is located. This officially clears the lien from public records.
2. Negotiate with the Creditor
If you cannot pay the full amount, you may be able to negotiate with the creditor for a reduced settlement. Many creditors prefer to receive partial payment rather than risk collecting nothing. Be sure to get any agreement in writing and ensure the creditor files the release of the lien form once the payment is complete.
3. File for Bankruptcy
In some cases, filing for bankruptcy can remove certain liens, especially if they are unsecured debts like credit card balances. However, bankruptcy does not automatically remove all liens, so you should consult with a legal professional to determine if this option is right for you.
4. Obtain a Court Order
If the lien was placed in error or is invalid, you can challenge it in court. If successful, the judge may issue a court order instructing the removal of the lien. This option requires legal action and may take an extended amount of time to resolve.
5. Wait for the Lien to Expire
Depending on the type of lien, some liens expire after a certain period. In Maryland, a judgment lien can remain on your property for up to 12 years unless renewed by the creditor. If the lien is close to expiring and the creditor has not taken action, it may be removed without further action on your part.
Selling Your House with a Lien
If you need to sell your house in Maryland but have a lien, you still have options. Some home buyers are willing to purchase properties with liens, saving you the hassle of paying off the debt yourself.
Selling to a cash home buyer can be the fastest and easiest way to deal with a property lien. Companies that buy houses in Maryland often handle the lien removal process for you, ensuring you can close quickly without delays.
If you’re wondering, “How can I sell my house fast in Maryland with a lien?” the answer is working with the right buyer who understands these situations and can offer a solution.
Why Choose ACE HomeBuyers, LLC?
If you need to sell your house in Maryland but are struggling with a lien, we can help. At ACE HomeBuyers, LLC, we specialize in buying homes with liens, unpaid taxes, and other complications. We provide fair cash offers and can close quickly, eliminating the stress of dealing with creditors and legal paperwork. Contact us today for a no-obligation cash offer and take the first step toward a hassle-free home sale!
