Sell a house with a tax lien
Most people who need to sell a house with a tax lien assume the lien stops the sale, but it does not. That belief costs them months they did not have to lose. A lien is a claim against the money, not a padlock on the door. The title company pays it out of the proceeds at closing, before anything reaches you.
Why liens still derail conventional sales
The problem is rarely the lien itself. It is time and certainty. Liens show up in the title search, often weeks into a sale. A buyer with a mortgage may not be able to wait while payoff figures are requested and negotiated. Deals fall apart, and the seller starts over with a house that has sat longer. Unpaid property taxes add another risk. Counties can eventually hold a tax sale, on a timeline separate from any mortgage.
What to know
The lien is paid from the proceeds, not from your pocket
You do not need to clear the lien before you sell. The title company pays it off at closing, and you get whatever is left. If the sale price is more than all the liens combined, you still walk away with money.
Different liens have different priority
Property tax liens generally come before almost everything else, including the mortgage. Federal tax liens, judgment liens, and mechanic's liens each have their own place in line. Priority decides who gets paid first from the proceeds. That matters when the total is close to the sale price.
The IRS has a discharge process, and it takes lead time
A federal tax lien can be discharged from a specific property so a sale can close. But the application takes time to process. If there is an IRS lien, tell us at the very start. Then the request goes in right away, not at week four.
Delinquent property taxes run on the county's clock
Counties can eventually sell a tax certificate or the property itself. That timeline is set by state and county law and has nothing to do with your mortgage. Find out where you really stand with the county instead of guessing.
Order a title search early rather than late
Old liens often turn up that owners forgot or never knew about. They include judgments from an ex-spouse, a contractor dispute, or an old HOA balance. Better to know in week one.
This is general information based on what we see in this situation regularly. It is not legal, tax, or financial advice, and the rules differ meaningfully from state to state. Talk to an attorney or a CPA about your specific circumstances.
How we handle this specifically
- We buy with liens in place and clear them through the title company at closing.
- We handle IRS discharge requests, municipal fines, HOA balances, and judgment liens all the time.
- We pay for the title work, so you are not paying for the search that finds the problems.
- If the liens add up to more than the house is worth, we will tell you plainly instead of dragging it out.
How selling to us actually works
Tell us about the house, and your number
The address, a rough idea of its condition, and what you need to get for it. No photos, appraisal, or repair estimates needed, and nothing has to be cleaned up first.
About 2 minutes
We check whether your number works
We look up recent sales of similar homes nearby and see the house ourselves. Then we check the math against your number. It takes one walkthrough, at a time that suits you, and we pay for any inspection.
Usually within 24 to 48 hours
You get a straight answer, not a pitch
Either yes, we can do your number, or no, we cannot, and here is exactly where the gap is. You get it in writing, with no pressure and no deadline games. If it works, a title company handles closing and you pick the date.
Close in about 1 to 3 weeks, or later if you prefer
Common questions
- Can I sell a house that has a lien on it?
- Yes. The title company pays liens from the sale proceeds at closing. They reduce what you take home, but they do not stop the sale.
- What if the liens are worth more than the house?
- Then the lien holders have to accept less than full payoff, which some will consider. It takes longer and is not certain. We will be straight with you about whether it is realistic.
- There is an IRS lien on the property. Does that stop it?
- No, but it adds time. The IRS has a formal discharge process for exactly this. Tell us at the start so the application goes in right away.
- How far behind on property taxes is too far?
- It depends entirely on your county's tax sale timeline. Call the county treasurer and get your actual status. Until a tax sale is final, you generally still have options.
Related situations
Facing foreclosure
There is usually more time and more equity left than lenders make it feel like.
Behind on mortgage payments
Missed payments are not the same as losing the house or the equity.
Inherited a property
Often shared between siblings, full of belongings, and costing money every month.
We handle this in every market we buy in
Talk to us before you decide anything
You do not need a number ready, or photos, or a plan. Want to know your real options, even the ones that do not involve us? Call and ask.
Sabrina usually picks up. (615) 576-8827