One of the most frustrating things that can happen during a real estate transaction is for an unexpected snag to halt progress on a sale: A lien is one issue that can stop progress in its tracks. But what is a lien, and why does it cause so much trouble? A lien is a legal claim against your property, which a creditor makes in response to an unpaid debt. An unpaid lien can be a major headache when selling a house, and our real estate agents are here to help you understand how liens work, as well as how to resolve them.

Why a Home Lien Can Cause Snags when Selling a House

A property lien is placed by a creditor due to an unpaid debt, and the debt that leads to a lien can come from many different places. When you take out a mortgage on a home, the lender technically has a lien that can be put into effect if mortgage payments are not completed. There are also a number of other common types of liens:

• Tax Lien – If you don't pay the necessary state, federal, or county taxes on time, you may have a tax lien placed on your property by the relevant government agency.
• Mechanic Lien – Despite the name, this type of lien doesn't just come from mechanics. A mechanic lien can be placed by any contractor who works on your home, but is not paid the agreed amount for their services.
• Judgement Lien – This type of lien occurs when judgement payments related to a lawsuit or other legal issue goes unpaid. A judgement lien can be imposed by the person who won the judgement, or by a lawyer for unpaid legal fees.

How to Handle an Unpaid Lien and Get Your Sale Back on Track 

While liens sound scary and can cause very real problems when selling a house, they are also more common than many sellers expect. In some cases, a lien comes from a credit issue from a long time ago, which only becomes apparent when you're checking your credit history to prepare for a sale. The good news is that you can absolutely address a lien, put it in the past, and get on with the process of selling your home, snag-free.

• Double-Check the Lien – The first step in resolving a lien is making sure that the lien actually belongs to you. In some cases, another family member may have a lien that inadvertently winds up on your record, or a lien is placed accidentally when you have the same name as a person who really does owe a debt. So always check first, and make sure the lien really belongs to you.
• Contact the Lien Holder – If the lien does belong to you, don't worry, there is plenty that you can do to address the issue and get your sale back on track. Start by contacting the lien holder as soon as possible to discuss the debt, and your options for paying it. Once you've decided on the right option and arranged for payment, you'll be ready to get back to business. If you have any questions about your lien, it's a great idea to speak with a trusted financial adviser or legal professional for advice on how to move forward.

Our team is here to help with all of your Las Vegas real estate needs. Contact Wardley Real Estate to buy and sell homes in Las Vegas.