How do you sell your home if you have a lien on it? Well, it depends on what the lien is and how much. The definition of a lien is, “A legal claim on assets that allows the holder to obtain access to the property if debts are not paid.” By this definition, most homeowners already have at least TWO liens on their house right now – their mortgage and property taxes. Both of those will need to be paid in full to sell the home. There are other types of liens – unpaid income taxes (State or Federal), judgements from a lost court case, unpaid child support payments, etc.
As long as the value of your home is greater than the payoff amounts of any liens and the closing/transaction costs, then the sale can go through and you get what’s left over. But what if the amount to payoff the liens is HIGHER than your home value? If this involves a mortgage, then you would apply for what’s called a “short sale” and try to negotiate a lower payoff amount.
If it’s another kind of lien, you can try to negotiate with them. Either a lower payoff (called a “settlement”), or you work out a payment plan with them (often called an “offer in compromise”) so they accept less than full payoff now but you agree to make payments on the balance going forward but they release their lien on the property to let it close.
Some liens are “blanket” liens, meaning the entity put a lien on anything you own. If you can show them there is no equity in your property due to their lien, they may give you a “partial release,” meaning they will release the lien from that property in order for the deal to close, but their lien remains against your name and any other assets you have.HOME OUR LISTINGS MLS SEARCH INSTANT HOME VALUE SELL MY HOME Brentwood Apple Hill Estates Deer Ridge Garin Ranch Montelena Shadow Lakes Sterling Preserve Trilogy at the Vineyards Tuscany Discovery Bay Oakley Antioch OUR AGENTS REVIEWS BLOG MORTGAGE CALCULATOR AFFORDABILITY CALCULATOR OUR SOLD LISTINGS CONTACT US FAVORITE SEARCHES