You’re craving a fresh start with a new property, but you’re currently facing restrictions from your lender that keep you from moving forward. Can you sell a property with a lis pendens? Home Buyers of Savannah discusses selling your house while navigating a lis pendens below.
What Is a Lis Pendens?
Lis pendens means “suit pending” in Latin. It essentially labels your property as subject to an incoming or ongoing legal dispute between you and your lender or a previous owner. You might get hit with a lis pendens if:
- You’ve defaulted on your mortgage payments.
- You owe money to your homeowners’ association or a similar organization.
- You owe outstanding property taxes.
- A divorce on an unclear title transfer has led to another party disputing the title and ownership.
Naturally, you might wonder how this legal issue will impact your efforts to place the property on the local housing market.
How Does a Lis Pendens Affect the Property Sale Process?
You can still put your property up for sale despite the lis pendens. However, you’re much less likely to attract a traditional buyer who will pay your listing price with the pending litigation attached to the house. All they have to do is perform a basic title search, and they’ll find the litigation listed under your property title.
Why might a lis pendens shrink your pool of potential buyers? Well, it casts a cloud on the title, which means it muddies clear ownership. A would-be buyer might see this as something that could drag them into a legal battle. It can also keep them from securing property financing with a mortgage.
So, can you sell a property with a lis pendens? What avenues should you consider? Let’s explore what the traditional real estate process might entail in this situation:
- Property repair and preparation service expenses: Consider the costs of making the house and property as a whole look pleasing and meet basic market standards.
- Negotiations with the suit claimant: You might have to negotiate with the claimant about the sale portion that they’ll receive to settle the suit.
- Lower sales prices: One way to attract traditional property buyers is to price the property below its market value.
- Legal fees and other payments eating into the profits: You might need guidance from a real estate attorney to properly navigate the process and cover all your bases.
Working With a Cash Home Buyer Might Be Your Best Option
The above-listed points are for a property in relatively good condition. You’ll also navigate disclosure obligations if it has significant safety issues, which could lower the price even more. The sale process may take much longer, too. A cash home buyer purchases properties in any condition for a faster, less fee-heavy closure.
Home Buyers of Savannah Removes Selling Barriers With Cash Offers in Savannah, Georgia
Can you sell a property with a lis pendens? You certainly can if you work with Home Buyers of Savannah. We will make a cash offer on your house, whether it has a lis pendens, a lien, or a major structural flaw. Call 912-513-8744 to get your offer.
