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Selling a house with a tax lien or other liens.

A lien does not always stop a sale. Here is how liens usually work when a home is sold, and what to check first.

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Money pressure

Understand your situation first.

A lien is a legal claim against your property for a debt, such as unpaid property taxes, federal or state income taxes, a court judgment, contractor bills, or HOA dues. Liens are tied to the home, so they generally have to be paid or released before a buyer can get clear title. In many sales this happens at closing, with liens paid from the sale proceeds before you receive anything.

This page explains the common types of liens, how they affect a sale, and the options if what you owe is more than the home can cover. Rules for property tax liens and tax sales vary a lot by state and county, so local advice matters. Doorbloom can connect you with independent investors and real estate professionals, some of whom work with title issues, but we do not buy homes or give legal or tax advice.

What to know

Things to think through.

1

Find out exactly what is recorded

A title search shows the liens recorded against the property, and some may be ones you did not know about. A title company or real estate attorney can run one early. Knowing the full picture helps you avoid surprises later.

2

Property tax liens vary by state

Unpaid property taxes can lead to a lien and, eventually, a tax sale. How that works, including any period to pay and redeem the property, differs by state and county. If your taxes are paid through your mortgage escrow, talk with your servicer too.

3

Federal tax liens and IRS options

If the IRS has filed a federal tax lien, it generally must be satisfied before you can sell. Often the lien is paid from the sale proceeds at closing. If the sale will not cover the full amount, the IRS has a process to request a discharge of the lien from the property.

4

Which liens get paid first

Liens are generally paid in a set order at closing, and property tax liens often take priority over others. The exact order depends on the type of lien and state law. A title company or attorney can confirm what gets paid first and what that leaves for you.

5

Negotiating and releases

Some creditors will accept less than the full amount to release a lien so a sale can go through, but they are not required to. Always get a written payoff letter or release before closing. A tax professional or attorney can help with these conversations.

Your options

There is more than one path.

Resolve the lien first

Paying the debt, working out an arrangement with the creditor, or disputing a lien you believe is wrong may let you keep the home or make a later sale simpler. This takes time and depends on the creditor. For tax debts, a tax professional can explain the available programs.

List with an agent and pay liens at closing

If there is enough equity, an open-market sale can pay off liens from the proceeds while aiming for the highest price. The title or escrow company handles payoffs at closing. Liens can add time, so start the title work early.

Explore offers through Doorbloom

You can share your home's details for free and hear from independent investors and real estate professionals, some of whom have experience with liens and title issues. This may suit homes that need work or owners who want a simpler path, though offers may be below open-market value. Liens still have to be handled at closing, and nothing is binding until you sign a purchase agreement.

How it works

Three clear steps.

  1. 1

    Tell us about your home

    Share the address, condition and your timeline. It takes about a minute, and we only ask what is needed for the next step.

  2. 2

    Review who is interested

    Real estate investors and professionals review your home. You see who they are before anyone gets your contact details.

  3. 3

    Choose your next step

    Talk to the people you want, compare your options, or decide not to sell. There is no pressure and no obligation.

Practical next steps

Where to start.

  1. 1Order a title search earlyA title company or attorney can show which liens are recorded and how much each creditor claims.
  2. 2Get written payoff lettersAsk each creditor for a payoff amount with a good-through date. This shows what a sale would need to cover.
  3. 3Check with your county tax officeIf property taxes are behind, ask about the amount due, any scheduled tax sale, and redemption rules.
  4. 4Look into IRS optionsIf there is a federal tax lien, review the IRS guidance on paying and discharging liens. A tax professional can help you apply.
  5. 5Get free housing counselingIf mortgage or property tax payments are a struggle, a HUD-approved housing counselor can review your options at little or no cost. Be wary of anyone who asks for upfront fees to make a lien or foreclosure go away.

Questions

Your questions, answered.

Can I sell my house with a tax lien on it?

Often, yes. In many sales the lien is paid from the proceeds at closing so the buyer receives clear title. If the sale price will not cover the lien, you may need the creditor's agreement or, for an IRS lien, a discharge.

What happens if I don't pay my property taxes?

The county can place a lien on the property, and if the taxes stay unpaid, the home may eventually be sold at a tax sale. Timelines and any right to redeem vary by state. Contact your county tax office and a local attorney as early as possible.

Who pays the liens when a house is sold?

The seller's liens are generally paid from the seller's proceeds at closing. The title or escrow company handles the payoffs using the creditors' payoff letters. Whatever is left after liens, loans, and costs goes to the seller.

What if the liens are more than the house is worth?

Then a sale can usually only go ahead if lienholders agree to accept less or release their liens. For a federal tax lien, the IRS has a discharge process for this situation. An attorney or tax professional can help you approach creditors.

How does Doorbloom work if my house has liens?

You share your home's details, including any liens you know about, for free and with no obligation. Independent investors and real estate professionals can review it, and you choose who to talk to. Doorbloom does not buy homes or make offers, and any sale still goes through a normal title and closing process.

Is Doorbloom buying my house?

No. Doorbloom is a platform that connects US homeowners with real estate investors and professionals. Any offer comes from them, and nothing is binding until you sign a purchase agreement.

What does it cost?

Creating an account and telling us about your home is free for homeowners.

Who sees my information?

Professionals can see details about your home. Your name, email and phone number are only shared with people you choose to connect with.

Helpful resources

Independent help and information.

IRS: Understanding a federal tax lienHow federal tax liens work, plus release, discharge, and withdrawalIRS: Federal tax lien on your homeHow a federal tax lien affects selling or refinancing a homeCFPB: Find a Housing CounselorSearch HUD-approved housing counseling agencies near youFTC: Skip the scamsWarning signs of foreclosure and mortgage relief scams

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