You’re eager to sell your Hendersonville home, but there’s just one big problem: someone has filed a lawsuit against you, and there’s a lis pendens attached to the property. You’re probably wondering, “How can I sell my house fast in Hendersonville, TN, if it’s tied up in a legal dispute?”
Can you sell a property with a lis pendens? Yes, but it’s not going to be easy. Learn everything you need to know in this guide from My Tennessee Home Solution.
What Is a Lis Pendens and How Does It Affect a Home Sale?
Lis pendens is Latin for “a suit pending.” Essentially, it means that there’s a lawsuit pending on the house.
You might end up with a lis pendens lawsuit on your home if there’s a dispute over the title or ownership of the property. For example, suppose you purchased a house for cash a few years ago because the seller didn’t have a clear title.
Later, the seller’s family member comes to you and says that the house is legally theirs and the seller had no right to sell it to you. You refuse to move out, so the family member files a lawsuit against you.
An impending foreclosure can also put a cloud on the title clearance process, as can unpaid property taxes.
Selling a house with a lis pendens can be very challenging. If a buyer purchases a house with a pending lawsuit, they’re essentially accepting the risk and outcome of the lawsuit. Very few people are willing to buy a house after completing a buyer risk assessment that outlines what can happen if the lawsuit doesn’t go in their favor.
Can You Sell a Property With a Lis Pendens?
It’s possible to sell a house with property sale restrictions, but doing so is quite difficult. Most banks won’t agree to lend money to buy a house with a pending lawsuit. In order to transfer the title free and clear, you’ll have to pay off any liens on the property.
And don’t think you can sell the house without informing the buyer of the pending lawsuit. Per legal disclosure requirements, you’re obligated to tell buyers about any lawsuits or liens on the house.
If a buyer truly wants your house, you may be able to negotiate by working a resolution into the sale. For example, suppose there’s a lien on the property because you owe $10,000 to a contractor. You and the buyer might agree that $10,000 of your home’s sale price will go toward paying the contractor, allowing the lien to be removed from the property.
Having Trouble Finding a Buyer for Your House With a Pending Lawsuit? Call My Tennessee Home Solution
Can you sell a property with a lis pendens? Yes, but it can take a long time to find a buyer, so the best option is to sell your house to My Tennessee Home Solution. We purchase houses involved in legal disputes for a fair price.
To get an offer or learn more about selling as-is, call us at (615) 933-5431.