Can You Sell a House With a Lien on It?

If you’re in debt and must relocate, you might look for ways to “sell my house fast in Chattanooga.” But can you sell a house with a lien on it? Homeowners sell mortgaged properties all the time, so is a lien different?

Chattanooga Property Solutions has years of experience conducting straightforward home sales for cash throughout Chattanooga. If you owe money and have a lien, see whether you can still sell your property using our guide below. 

What Are Property Liens?

A property lien is a public legal claim against a residence. In some states, mortgage lenders and other creditors use property liens to protect themselves if their borrowers default on their payments. 

The Most Common Types of Liens 

Can you sell a house with a lien on it? It’s possible. Still, it helps to understand the kinds of liens you could encounter before selling your house. 

Voluntary and Involuntary Liens

Liens can either be voluntary or involuntary. The first option refers to homeowners who don’t make their payments on time or fail to stick to their loan terms, causing their lender to foreclose on their property. An involuntary lien doesn’t require the property owner’s permission or involvement. 

Judgment Liens

Creditors like personal loan lenders and credit card companies can put liens on personal property. To do so, they must file and win a lawsuit before they can legally take ownership of your property.

Property Tax Liens

A property tax lien is one of the most severe lien types. It can happen if you don’t pay your taxes. The federal government may seize and sell your house to cover its losses. 

IRS Liens

If you fail to pay your taxes after getting notifications from the Internal Revenue Service, the IRS can implement a federal tax lien on everything you own. 

How To Sell Your Home With a Lien

Though you can sell a house with a lien, you can’t take the traditional route and list it on the market. Since a lien affects the home’s title and ownership, selling the house this way is complicated. 

Instead, you can do the following:

  • Use a cash buyer: Qualified cash buyers for houses understand the legal complexities surrounding houses with liens. They can purchase the property from you regardless of the loan type.
  • Pay the lien: Depending on how much debt you have, it might make sense to pay the lien before selling. 
  • Sell the house to pay the lien: Sometimes, selling a house and including debt with the sale proceeds is possible.

Turn to Chattanooga Property Solutions When You’re Ready To Sell Your House

Can you sell a house with a lien on it? We at Chattanooga Property Solutions know it’s possible, but it can be challenging. Thankfully, our company has over 20 years of experience helping clients sell houses after buying them by making fair cash offers. We can eliminate the need to list your property on the Chattanooga real estate market, saving you time, money, and effort. 

Start your personalized home selling process today — call (423) 454-3070 for an appointment. 

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