Thing to Know About Selling a House With a Lien


What happens if you purchase a property with a loan but fail to repay it? In that case, a lien comes into effect. It is a legal right granted by the court to the creditor to hold or claim a property until the debt is paid. A lien can be given either by the creditor or by a legal judgment. If the debt is not paid, you lose the right to your asset. However, you will be consulted before that is done. But can you even sell a house with a lien on it if you choose to do so? There are several ways to do that. Here is all you need to know about different types of liens and how each of them can affect you.

The Different Types of Lien


This type of lien comes into effect by a court ruling. It allows the creditor to possess the debtor’s property when the debt is unpaid. A judgment lien can be made either against an individual or a business. They are also nonconsensual because they are attached to an owner’s property without their consent.


You can take several types of loans to buy a house. One of those is a mortgage. They are also called secured loans and are made with a “deed of trust.” It grants security to the borrower if you decide to stop making the payment. They will hold legal title to the property until the loan is paid. There are three mortgages. The first is made by the creditor when the property is purchased. The second one is made in addition to the first one. If there is a default on mortgages, the creditor will make the third one only after settling the earlier ones.


Mechanic’s liens are also called construction or property liens. They are filed by contractors, subcontractors, or suppliers who weren’t paid by the owner after a project is completed. It gives them the right to seek compensation from the owner. In the long run, it becomes challenging to sell a house with this lien attached. The reason is that the buyer would have to pay off the debt first before purchasing it. Obtaining a loan also becomes a challenge when dealing with an asset with a Mechanic’s lien on it.

Child Support

Another type of lien is the Child Support lien. If you fail to make the child support payment on time, the court can place a lien on your property. That can include other assets like cars and land. In case of such a lien, it is important to clear the debt before deciding to sell the asset. It is interesting to know that the child support amount excludes unpaid birth costs and fees.

How to sell a house with liens?

Clear All Debts

The obvious answer to that would be to pay off the lien.  However, before proceeding, it’s essential to understand how to find a lien on a property, as uncovering any existing liens can help you assess the total debt burden and make an informed decision on the best course of action.  It is advisable to clear all debts and get a clearance certificate from the creditor in order to further the process of selling your house. You should have some documentation to prove that you don’t have any outstanding payments left. Challenging the lien in court is another option. But for that, you should be sure that it is invalid or illegal.

Selling a House to Cash Home Buyers

The best way out is to contact professional homebuyers. These homebuyers will conduct a title search to determine the outstanding payments and ownership. Finally, they will make you a cash offer. If it is acceptable to you, they will buy your property while paying off the liens. It is a speedy, efficient, and beneficial way of selling your house. Before doing so, you should check a few details. These include the company’s accreditation, address, and license. It is also advisable to have a detailed call or meeting with them before proceeding. You could also watch the testimonials on their website if they are available to get a better understanding of the dealings of your potential buyer.

The question of “can you even sell a house with a lien on it?” can be answered in an affirmative provided that you keep in mind the type of lien that your property has and the legal binding that is on it.  In case the law prohibits you from moving forward with selling your property before the lien is paid off, it is best to first work towards paying it off since getting into legal complications can only make matters worse. Even though there are several ways of going about selling a house on a lien, the most effective way of selling it is by getting in touch with a homebuyer.

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