Selling a lien against a property can be advantageous, depending on the situation. Take a moment to explore some of the financial scenarios where selling a lien may make the most sense.
You Want to Avoid Risks
Trying to collect a lien against a property does not always work out for the collector. You need to deal with the uncertainty about the debtor’s ability or willingness to pay. Selling a lien allows you to avoid the potential challenges of attempting to collect the debt.
The process of enforcing a lien can also involve legal procedures, which come with extra costs and time. Selling the lien passes the responsibilities onto the buyer, allowing you to avoid the legal complexities and expenses. You may even avoid foreclosure proceedings when holding a lien with a debtor who continues to avoid payments.
You Want to Diversify Your Portfolio
Selling a lien may allow you to allocate resources to different types of assets, such as stocks or bonds. You may find that diversifying your portfolio offers less risk compared to holding a property that may not generate the income you expect.
You Need Cash Fast
One of the most common reasons to sell a lien on a property is to get cash quickly. If you need immediate cash for an unexpected expense, selling a lien can quickly provide funds. This may be useful in emergency situations or to take advantage of a time-sensitive financial opportunity.
When you sell to a buyer such as Mayflower Judgments, you can expect a fast turnaround. Rather than waiting for the debtor to pay, you can get the cash you need without any difficulty.
