If you’ve discovered there’s a lien on your property, you might feel a little panicked, especially if you need to sell quickly. The good news is this: selling a house with a lien is completely possible. Homeowners deal with this situation more often than you might think, and there are clear steps you can take to make the process smoother.
At Golex Properties, we work with sellers across Florida and Georgia who face complicated situations like liens, code violations, or even tenants who won’t move out. We’ve seen it all, and we know how to get deals to the closing table without delays. In this guide, we’ll walk you through everything you need to know about liens, how they affect a sale, and what you can do to keep things moving.
First Things First: What Is a Lien?
Before we dive into how to sell your home with a lien, let’s clear up what a lien actually is, and why it matters.
A lien is a legal claim that someone places on your house when you owe them money. Think of it as a way for a lender, contractor, or government agency to make sure they get paid. It’s like a “hold” on your property that must be taken care of before the home can officially change hands.
Here’s how it works: when you go to sell your house, a title company runs a title search. If a lien shows up, the sale can’t be completed until that lien is either paid off or resolved. The lien doesn’t mean you’re in trouble, but it does mean there’s unfinished business tied to your home.
Many homeowners are surprised to learn they have a lien. It’s more common than you might think, and it can come from several different places. Let’s break down the most common types of liens you might come across:
Mortgage Lien
If you have a mortgage, you already have a lien on your home. This is totally normal. Your mortgage lender (like a bank or credit union) places a lien as a way to protect their investment. Until your mortgage is paid off, they technically have a legal interest in your home.
Can I still sell with a mortgage lien?
Yes, most people do. The lien is paid off at closing using money from the sale. The title company handles this for you.
Property Tax Lien
If you’ve missed property tax payments, your local government can file a lien against your home. Property tax liens are serious, and in some states, they take priority over everything else, even your mortgage.
What happens if I don’t pay it? The county may eventually auction off your home. But if you’re selling, the lien will usually be paid from your sale proceeds before you get your check.
Mechanic’s Lien (Also Called a Contractor Lien)
Did you have work done on your house, like a new roof, kitchen remodel, or plumbing, but never paid the bill in full? Contractors, subcontractors, or material suppliers can file what’s called a mechanic’s lien.
Even if I didn’t sign anything? Yes. If they can prove the work was done and unpaid, they may still have the right to file. These liens can catch homeowners off guard during the title search.
HOA Lien
If your home is part of a homeowners association (HOA), unpaid dues or fines can lead to a lien. These can build up fast, especially if the HOA adds late fees or attorney costs.
Can the HOA stop the sale? Yes, temporarily. The lien has to be resolved before you close. Many sellers don’t even know they have an HOA lien until the title search uncovers it.
Judgment Lien
If someone sues you and wins in court, they might be able to place a lien on your property, called a judgment lien. This is one of the more complicated liens because it often relates to lawsuits, debts, or settlements.
Can this be negotiated? Sometimes. Depending on the creditor, you may be able to settle the judgment for less than the full amount.
IRS Lien
If you owe back taxes to the IRS, they can file a federal tax lien against your home. These liens are serious and follow strict government rules.
Can I still sell with an IRS lien? Yes, but it takes extra steps. You’ll likely need to request a payoff letter from the IRS and work with a title company familiar with these situations. A good cash buyer can also help you navigate this.
So, Can I Sell a House With a Lien on It?
Yes, you can sell a house with a lien on it. But the lien has to be addressed before closing. That typically means it needs to be paid off, settled, or otherwise resolved during the sale process. In many cases, the title company will use proceeds from the sale to pay off the lien at closing.
For property owners in Georgia wondering whether you can sell a house with a lien, the answer is yes, and there are proven strategies to make the process smooth even when dealing with multiple liens or complex situations.
Here’s what usually happens:
- Buyer makes an offer.
- Title company runs a title search.
- Lien is found.
- Lienholder is paid at closing using sale proceeds.
- The lien is released and the sale can go through.
If you’re working with a cash buyer like Golex Properties, this process is even smoother. We work directly with title companies and lienholders to handle everything behind the scenes, so you don’t have to chase paperwork or make stressful calls. We’ve bought homes with tax liens, contractor liens, tenant issues, and more.
What If I Didn’t Know There Was a Lien?
This happens more often than you’d think. Maybe you inherited a property and didn’t know the previous owner had unpaid bills. Maybe a contractor filed a lien without telling you. Or maybe an old judgment you thought was settled never got officially removed.
That’s why doing a pre-listing title search can be incredibly helpful. It gives you a chance to fix any surprises before they delay your closing.
How Liens Impact the Selling Process
Once you decide to sell your home, there’s a behind-the-scenes step that happens before you can close: the title search. This is where a title company reviews public records to confirm you’re the rightful owner and checks for any issues, like unpaid debts, judgments, or liens, that could prevent the sale from moving forward.
If a lien is found, it doesn’t mean you can’t sell your house. But it does mean there are some extra steps you’ll need to take. The lien must be resolved before closing, either by paying it off, negotiating a settlement, or arranging for the buyer to take care of it as part of the deal.
Here’s how liens can affect the home selling process, and why it’s important to be prepared.
Your Timeline May Be Delayed
How long does it take to resolve a lien? That depends. Some liens can be cleared up in a few days, while others take several weeks. If you need to track down lienholders, request payoff letters, or negotiate terms, it could slow things down, especially if you’re dealing with government agencies or legal judgments.
Can I speed things up? Yes! Getting a title search early (even before you list the house) gives you a head start. And working with a cash buyer like Golex Properties means you don’t have to worry about lender delays.
Your Sale Proceeds Might Be Lower
Will I still get money if I have a lien?
Yes, but keep in mind that liens are paid out of your profit at closing. For example, let’s say your house sells for $250,000 and you have a $10,000 contractor lien. That amount will be taken from the proceeds and sent directly to the lienholder. You’ll receive what’s left over after any mortgages, taxes, and liens are paid.
What if the lien is more than what I’ll make from the sale? This is where things get tricky. If the lien is too large, you might need to negotiate a settlement or explore a short sale. But don’t panic, experienced professionals can help you find a solution.
Some Buyers Might Walk Away
Traditional buyers, especially those using financing, are often cautious about buying a house with a lien. That’s because:
- Their lender may not approve the loan until the lien is cleared.
- The delay might affect their moving plans.
- They may worry about legal complications.
Do I have to tell the buyer about the lien? Yes. Full disclosure is important. If you’re upfront about it, some buyers may be fine with waiting, but others might look for a different home that doesn’t come with complications.
Why Cash Buyers Make Selling With a Lien Easier
This is exactly why many homeowners dealing with liens choose to work with a cash buyer instead of going the traditional route.
Cash buyers, like Golex Properties, don’t rely on bank loans, so we can move fast. Even if there’s a lien on your home, we work directly with the title company to coordinate lien payoffs and keep the deal moving forward.
Here’s how working with Golex can help:
- No waiting for lender approvals
- We’ll help you understand the lien and get the right payoff documents
- We pay off the lien at closing so you don’t have to
- You still walk away with cash in hand, often in just 7 days
What if I don’t even know there’s a lien on my house? That happens more often than you think. A pre-sale title search will uncover any unknown liens, even ones from years ago that were never cleared.
Can Golex still buy my house if it has multiple liens? Yes! We buy houses with all types of liens, property tax, contractor, HOA, judgments, even if there’s more than one. Our team works with the title company to resolve them quickly.
Do I have to pay for the title search myself? Nope. When you sell to Golex, we cover the closing costs, including the title work. You won’t have to pay anything out of pocket.
Selling a House With Liens: Your Step-By-Step Guide
Selling a house with liens can be stressful enough, and it’s easy to feel overwhelmed. But here’s the truth: you can still sell a house with a lien on it, and the process doesn’t have to be a nightmare.
The key is knowing what steps to take and getting the right help along the way. Below is a clear, step-by-step guide to help you move forward with confidence.
Step 1: Confirm Exactly What You’re Dealing With
Before anything else, you need to know what kind of lien is on your property, and how many there are.
Start by ordering a title search through a title company or real estate attorney. This will give you a full report showing:
- How many liens are attached to the home
- Who placed them (the “lienholder”)
- How much you owe, including interest or late fees
Even if you think you know what’s owed, this step is important. Liens can pop up without you realizing it, especially if you inherited the property, used a contractor in the past, or fell behind on taxes or HOA dues.
What if I don’t want to list the house until I know everything is clear? That’s a smart move. Getting a title search early (before you list or accept offers) gives you time to handle any surprises before they hold up the sale.
Step 2: Get the Official Payoff Amount
Once you know who you owe, the next step is to request a payoff letter from each lienholder.
Why is this necessary? Because the amount shown in public records or your old bills may not be current. Most liens accrue interest or penalties over time, and the total you owe could be higher than expected.
A payoff letter will tell you:
- The exact amount owed as of a specific date
- Where the funds should be sent
- Any special instructions for releasing the lien
Tip: Always request this in writing. You’ll need it at closing to show that the lien has been resolved.
Step 3: Decide How You’ll Handle the Lien
Now that you know what’s owed, it’s time to figure out how you’ll take care of it. You have a few options:
Option 1: Pay It Off Before You Sell
If you’ve got the cash, this is the simplest route. Paying off the lien before listing your home removes any risk of delays.
Good for:
- Sellers who want to attract traditional buyers
- Situations where fast resolution is important
Option 2: Pay It Off at Closing
This is the most common method. The lien is paid directly out of your home sale proceeds at closing. You don’t need to write a check, the title company handles it.
Example: If you sell your house for $300,000 and have a $10,000 lien, that $10,000 is subtracted from your profits and sent to the lienholder automatically.
Good for:
- Sellers who don’t have cash upfront
- Homes with enough equity to cover the lien
Option 3: Negotiate a Settlement
In some cases, lienholders are willing to accept less than the full amount, especially if they know they’ll get paid quickly through a sale.
You might be able to:
- Ask for a reduced payoff
- Offer a lump sum in exchange for releasing the lien
Good for:
- Judgment liens, older debts, or when equity is tight
Can I negotiate myself? Yes, but many sellers choose to work with an attorney or experienced buyer (like Golex Properties) who can handle this on your behalf.
Option 4: Sell to a Cash Buyer
If you’re looking for the easiest and fastest route, selling your house as-is to a cash buyer is often the best choice. A reputable buyer like Golex Properties can:
- Pay off the lien at closing
- Handle all communication with the title company
- Buy your home without you making repairs
- Close in as little as 7 days
Good for:
- Homes with multiple liens
- Sellers facing foreclosure or major repairs
- Inherited or tenant-occupied properties
Step 4: Be Transparent With Buyers
If you’re listing your home on the market, it’s important to let buyers know upfront that there’s a lien. Being transparent helps you avoid:
- Last-minute deal cancellations
- Legal issues for nondisclosure
- Delays during escrow
Don’t worry, having a lien doesn’t automatically scare buyers off, especially if you’ve already started the process to resolve it. If you’re working with a real estate agent, make sure they’re aware so they can guide buyers properly.
If you’re selling to a cash buyer like Golex, you don’t have to stress, we handle this every day and expect to deal with liens. It’s part of what we do.
Step 5: Keep the Paperwork Organized
Once a lien is paid, it’s not automatically removed from public records. That’s why it’s important to make sure the lien release is officially filed with the county or clerk’s office.
After closing:
- Ask for copies of the lien release
- Confirm the title company filed it properly
- Keep everything in your records in case it comes up later
Why this matters:If you ever sell another home, refinance, or need proof that the lien was cleared, you’ll want those documents handy.
Bonus Tip:Working with a reputable title company or buyer means they’ll usually take care of this for you, but always ask to double-check.
Why a Cash Buyer Is Often the Easiest Solution
When you’re selling a house with a lien, it’s totally normal to feel overwhelmed. Maybe the property has unpaid taxes, a judgment from a court case, or leftover contractor bills, and now you just want a way out that doesn’t take months or cost you even more.
That’s where a cash buyer comes in.
Selling your house to a cash buyer, like Golex Properties, is often the fastest, simplest, and least stressful way to handle a property with one or more liens. You don’t have to list the house, make repairs, or worry about financing falling through at the last minute. Instead, you get a clear offer and a quick path to closing, even if there’s a lien involved.
Let’s break down why this route is such a smart solution for many sellers:
No Financing Delays
When you work with a traditional buyer, they almost always rely on mortgage financing. That means:
- Waiting for pre-approval
- Passing home inspections
- Dealing with lender-required repairs
- Possibly facing loan denial late in the game
But cash buyers skip the banks entirely. There’s no loan to approve and no risk of financing falling through. Once you accept the offer, the process moves forward, no delays, no guesswork.
The benefits of selling your house for cash become especially clear when you’re dealing with liens, since cash buyers can close quickly without the complications of lender requirements or buyer financing falling through.
No Repairs Needed, Sell “As-Is”
If your house has damage or needs updates, you might be worried about spending money to fix it before selling. With a cash buyer, you don’t have to lift a finger.
We buy houses as-is, meaning:
- You don’t have to fix the roof
- You don’t need to repaint or stage the home
- You don’t need to remove tenants or junk
- You don’t need to clean up anything for showings
Even if the property needs major work, or even if it’s vacant and neglected, we can still buy it.
Fast Closing, Even With Liens
One of the biggest benefits of selling to a cash buyer is how quickly you can close. In many cases, Golex Properties can close in as little as 7 days, depending on how fast we can pull title and resolve any liens.
Compare that to 30–60 days (or longer) when listing with a real estate agent.
Lien Resolution Is Handled for You
If there’s a lien on your house, most traditional buyers won’t want to deal with it, or they simply won’t qualify for financing until the lien is cleared.
But when you sell to Golex Properties:
- We work with the title company to coordinate the lien payoff
- The lien is paid directly from the sale proceeds at closing
- You don’t have to negotiate with creditors or chase paperwork
- You walk away with your money, and peace of mind
We make the lien process simple, fast, and stress-free.
Great for Sellers Who Need to Move Quickly
This route is ideal if you’re:
- Facing foreclosure
- Going through a divorce
- Settling an estate or inherited property
- Dealing with tenant issues
- Relocating for work or family
- Just looking for a clean break and quick cash
Skip the showings, forget the fees, and leave the waiting behind.
Commonly Asked Questions About Selling a House With a Lien
If you’ve never sold a house with a lien before, you probably have questions. You’re not alone, here are some of the most common ones we hear:
Can I sell my house if I owe more than it’s worth?
Yes, you can, but this may require a short sale. A short sale happens when your lender agrees to accept less than the full amount owed on your mortgage. It’s more complex and takes longer than a traditional sale, but it’s still possible with the right team.
Pro Tip:
If you’re underwater on your mortgage and also have a lien, working with a professional buyer can help you explore your options quickly.
What if there are multiple liens?
Every lien has to be addressed before the sale can close. The title company will:
- Identify each lien
- Contact the lienholders
- Pay them off in order of priority using your sale proceeds
Order of priority matters, especially if the sale amount won’t cover everything. The first lienholder gets paid first, and so on.
Can I just ignore a lien?
No, and it’s risky to try. Liens don’t go away on their own. If you try to ignore it:
- You can’t legally transfer ownership of the home
- The lien could turn into a foreclosure or lawsuit
- It could stop the sale at the last minute
Even if the lien is small, it must be paid off or formally released to finalize the sale.
If unpaid liens have put you at risk of foreclosure, exploring your foreclosure solutions now can help you avoid further damage to your credit and give you a path forward.
How do I make sure the lien is removed after payment?
After a lien is paid off, either before or at closing, the lienholder should issue a lien release (sometimes called a satisfaction of lien). This document proves the debt was paid.
Your title company usually handles filing this document with the county, but it’s smart to ask for a copy for your records. This helps ensure the lien doesn’t show up again in future title searches.
Key Takeaways: You Can Sell a House With a Lien
Selling a house with a lien doesn’t have to be stressful or complicated, as long as you know what to expect. By confirming what’s owed, getting the right payoff information, and working with experienced professionals, you can get to the closing table with confidence.
If you need to sell quickly, working with a cash buyer like Golex Properties may be your best option. We buy houses in Florida and Georgia in any condition, even with liens or tenants in place. Our team takes care of the paperwork, coordinates with lienholders, and closes fast, so you can move forward without the headache.
Ready to sell? Contact Golex Properties today for a no-obligation cash offer and take the first step toward a smooth, stress-free sale.
