Selling a home is already a big task, but if the facility has a lien, the process can be even more complicated. A lien is essentially a legal claim against your property for any outstanding liability, tax, or judgment. “Can I sell a house with a lien?” The short answer is yes, but it’s not as easy as traditional sales.
This Redfin Real Estate article will analyze what your lien is, how it affects your home sales, and how you can successfully sell your property, even if the lien is attached.
What is a home lien?
A lien is a legal right or claim by a creditor to the property. The creditor will be entitled to be paid from the sale of the property. Common reasons for liens are:
Unpaid property tax unpaid mortgage payment unpaid contractor or construction invoice (mechanic lien) court decision or legal dispute unpaid child support or compensation
Liens do not mean you cannot sell your home. However, this means that the lien must be addressed by repaying the lien or negotiating with the creditor before transferring the clear title to the buyer.
Can I sell a house with a lien?
Yes, you can sell a home with a lien, but the lien must be resolved during the closure process. Most buyers (and their lenders) need a clear title. This means there are no outstanding claims regarding the property. Typically, liens must be repaid using proceeds from home sales and are settled or negotiated with creditors to release the lien.
In rare cases, the buyer may agree to assume the lien (usually on sale in cash).
How to sell your home along with a lien
1. Confirm the lien
Request a title search or check the county records to see your property lien.
2. Determine the amount of payment
Once confirmed, contact your lien to find out the payoff amount, including the lien and fee.
3. Negotiate a lien
Creditors may accept less than the full amount to release the lien, especially if real estate sales are the only way to be paid.
4. Work with a real estate agent or lawyer
An experienced agent or real estate attorney can guide you through the negotiation and closure process to ensure that your lien is handled correctly.
5. Close sale
Upon closing, the lien will be repaid from the proceeds before receiving the remaining funds.
What happens if I don’t pay the lien?
If the lien does not resolve, clear ownership cannot be transferred to the buyer, and most lenders refuse to financing the purchase. In some cases, an unresolved lien can lead to foreclosures and legal action.
Tips for selling your home along with a lien
Action early by talking to a lien before listing your home. Get a payoff estimate to understand exactly how much you owe. Consider cash buyers as there is a possibility of more flexibility when purchasing a home with a lien. By disclosing your lien in advance, building trust and avoiding surprises, you become transparent with your buyers.
FAQs about selling a home along with a lien
Do you still have questions about selling a home with a lien? Our Redfin Real Estate Professionals are here.
1. Can I delete it without paying a lien?
In some cases, it may be challenged and removed if a lien is filed incorrectly or if the restrictions law expires.
2. How long does it take to clear the lien?
This depends on whether payments can be arranged or negotiated with a lien.
3. Can I sell it to a lien family?
Yes, but the lien must still be cleared for the title to be properly transferred.
4. Can I use sales means to pay a lien?
Yes, liens are usually deducted from sales revenue during closures.
A clever way to sell your home along with a lien
So, can you sell a house with a lien on it? Absolutely, but it requires extra steps and careful planning. Early verification of your lien, negotiate with creditors, and work with experts to successfully close sales and move forward.
