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  1. #1
    Join Date
    Jan 2019
    Posts
    3

    Default Selling a Home with a Lien

    My question involves real estate located in the State of: Missouri

    Good morning, looking for some options on what I can do with a property.

    My father passed away in 2013 and owned his home with no mortgage. At his death I became the personal representative of his estate. In 2014 the house sold at auction but during the closing process we discovered a lien from a judgement for one of his past credit card debts. The payoff for the lien is north of $50,000. The value of house is $20,000. The house has been vacant since 2014. The estate is insolvent.

    My questions are

    1. Can I sell the property with the lien to a cash buyer who is not interested in title work or title insurance?
    2. Can I demo the property if a lien exists?
    3. What steps should I take to try and resolve the lien?

    Thank you

  2. #2
    Join Date
    Oct 2016
    Posts
    3,133

    Default Re: Selling a Home with a Lien

    1. Not to anyone with a lick of sense.
    2. Why would you want to? The land has a lien on it, not just the improvements.
    3. Pay off the lien or walk away.

  3. #3
    Join Date
    Jan 2019
    Posts
    3

    Default Re: Selling a Home with a Lien

    1. Agree with that, lots of people with no sense
    2. House is in disrepair and demo is an option, understand that the lien would still exist
    3. Would it be worthwhile to try and negotiate with lien holder to obtain a release?

  4. #4
    Join Date
    Oct 2016
    Posts
    3,133

    Default Re: Selling a Home with a Lien

    3. What would be your goal in doing that?

  5. #5
    Join Date
    Jan 2019
    Posts
    3

    Default Re: Selling a Home with a Lien

    If the lien was released I could auction the house and have a clean title to convey

  6. #6
    Join Date
    Oct 2016
    Posts
    3,133

    Default Re: Selling a Home with a Lien

    But the estate owes more than the property is worth.

  7. #7
    Join Date
    Jul 2010
    Posts
    7,626

    Default Re: Selling a Home with a Lien

    It is very unlikely they will just release the lien. They might be willing to accept whatever you can get for the house as satisfaction of it since there are no other assets.

  8. #8
    Join Date
    Mar 2013
    Posts
    17,043

    Default Re: Selling a Home with a Lien

    Quote Quoting cougar729
    View Post
    If the lien was released I could auction the house and have a clean title to convey
    Whatever you negotiate, the lender isn't going to release the lien before the sale unless you pay cash in advance of the sale. Otherwise the money going to the lender would come out of the escrow at the closing of the sale before you have any control over it.

    You can certainly call the lender and make an offer of whatever little you want and see if it takes.

    No way to predict the results.

  9. #9
    Join Date
    Jul 2018
    Posts
    1,525

    Default Re: Selling a Home with a Lien

    Quote Quoting cougar729
    View Post
    In 2014 the house sold at auction but during the closing process we discovered a lien from a judgement for one of his past credit card debts. The payoff for the lien is north of $50,000. The value of house is $20,000.
    Given that you're asking your questions, I assume the auction sale did not actually go through.


    Quote Quoting cougar729
    View Post
    1. Can I sell the property with the lien to a cash buyer who is not interested in title work or title insurance?
    If you can find a sufficiently stupid buyer, yes.


    Quote Quoting cougar729
    View Post
    2. Can I demo the property if a lien exists?
    I have no idea what abilities you have, but the existence of the lien would not impact your ability to do this.


    Quote Quoting cougar729
    View Post
    3. What steps should I take to try and resolve the lien?
    Well...have you contacted the lienholder about this? If not, why not? If so, what happened? How old is the judgment on which the lien is based?

    You might consider petitioning the probate court for instructions.

  10. #10
    Join Date
    Oct 2006
    Posts
    15,497

    Default Re: Selling a Home with a Lien

    My recommendation is that you just walk away from the house. You are just going to be throwing good money after bad to continue to do anything about it.

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