Selling a House With Liens
A Lien Doesn’t Have to Stop the Sale
A lien on your property doesn’t have to stop you from selling. In fact, in most cases, liens are simply paid off through the title company at closing using the proceeds from the sale. Here’s everything you need to know about selling a house with liens in Texas and Georgia — and why what feels like a wall is usually a speed bump.
Common Types of Property Liens
Every one of these is handled at closing. We’ve seen them all:
How Liens Are Handled at Closing
When you sell your home, the title company conducts a title search to find all liens. At closing, each lien is paid off in order of priority using the sale proceeds. Whatever remains after all liens are paid goes to you. This means you don’t need to pay off liens out of pocket before selling — they’re resolved through the sale itself.
💡 We’ve purchased homes with multiple liens across Texas and Georgia. As long as the sale price covers the liens, we can close. Call 469-665-8481 and we’ll assess your situation same day.
Why Sellers Choose Royal Groups Realty
What If Liens Exceed the Home’s Value?
If the total of all liens plus your mortgage exceeds what the home is worth, you’re in a negative equity (“underwater”) situation. Options include a short sale (negotiating with lenders to accept less), filing for bankruptcy, or negotiating lien reductions directly with creditors.
We handle short sales regularly. Not every deal works, but many do. Read: Selling During Financial Hardship or Bankruptcy.
HOA Liens in Texas and Georgia
HOA liens can be surprisingly aggressive in both states. In Texas, HOAs have the right to foreclose on super-priority liens. In Georgia, HOA liens must typically be satisfied before a clear title can be issued. Either way, we handle these at closing.
Code Violation Liens
If your city has issued fines or placed liens for code violations, those are also resolved at closing. For properties with active code enforcement actions, read: Selling a House With Code Violations.
Frequently Asked Questions
No. All liens are paid off at closing through the title company using the sale proceeds. You don’t pay anything out of pocket up front.
All of them. Mortgages, property taxes, HOA dues, mechanic’s liens, judgment liens, IRS liens, code violation liens, unrecorded liens discovered in title search. Title company handles the payoffs.
That’s a short-sale situation. We negotiate with lienholders to accept less than face value when the numbers require it. Not every deal works this way, but many do. Read: Selling During Financial Hardship or Bankruptcy.
Very. In Texas, HOAs have super-priority foreclosure rights that can trigger fast. In Georgia, HOA liens block clear title until satisfied. Either way, we handle these at closing.
Yes — regularly. Code violations and municipal liens are resolved at closing. For active code enforcement, read: Selling a House With Code Violations.
IRS liens attach to real property and are resolved at closing. In some cases the IRS will accept a discharge of lien for less than the full amount when a sale is involved. Title company coordinates this.