Liens vs. Encumbrances: How They Impact Property Sales!
Liens are like financial encumbrances, representing debts recorded against your property. Examples include voluntary liens like mortgage liens and contractor-recorded mechanic's liens. On the other hand, encumbrances refer to any claim against a property in a broader sense.
When liens or encumbrances are filed against your property, it means that whoever buys your home will inherit these burdens. As a result, the likelihood of someone purchasing your property with existing liens or encumbrances is very low.
To facilitate the sale or refinancing of your property, it's crucial to pay off these liens or encumbrances beforehand. This step is typically required before most potential buyers or lenders consider moving forward.
Stay informed about the impact of liens and encumbrances on your property's sale and take proactive steps to resolve any outstanding debts. Your real estate agent can guide you through the process and help ensure a smooth transaction.
Contact me to know how this can affect the sale of your property!
PAYAM SHIRAZI, Broker
Direct: (949) 436-3936
Email: [email protected]