While buying a new house can be a dream come true, it could turn into a nightmare if the property carries outstanding expenses that you will have to pay. To take one example, it is possible you will discover a tax lien on a home before purchasing it.
Fortunately, there are ways you may get rid of a tax lien and go through with buying the house. U.S. News and World Report explains that hiring a title insurance company can help you with the following steps.
Clear the lien
The initial task of your title insurance company is to perform a background check on the title of your home to find any unresolved claims on the property, such as unpaid liens. Should the company discover a tax lien, it will see if it is possible to clear the lien by the closing stage.
Negotiate the lien
In the event clearing the lien proves difficult, the title company should let you and the seller know about the situation. This could lead to negotiations with the lien holder to come up with a resolution. If talks break down, walking away from the home may be an option for you.
Handling missed liens
Sometimes homebuyers do not learn about a lien until after they have bought a house. If you have title insurance, your title insurance company will be responsible for paying any previously undiscovered liens.
Also remember that your contract with your seller can include contingencies that allow you to walk away from your purchase in certain events. Different options may protect you from having to pay off a tax lien or any other unplanned expense on the property.