How to Sell a House With Liens or Tax Problems

Liens and tax issues may seem like roadblocks to selling your home, but they rarely make a sale impossible. Many homeowners unnecessarily postpone taking action because they believe these problems must be resolved before listing. At Linken Investments, we understand these challenges and can often address liens as part of our flexible transaction process, allowing you to move forward with confidence.

Common Types of Liens

• Tax liens
• Judgment liens
• HOA or municipal liens
• Contractor or mechanic’s liens

Each affects the title differently, which is why professional guidance matters.

How These Issues Are Resolved

Depending on the situation, liens may be:

• Paid at closing
• Negotiated or reduced
• Addressed through title work prior to sale

At Linken Investments, we work closely with title companies and attorneys to anticipate and solve these problems before they derail a deal.

When you have a lien on your home from tax debt, your increasing penalties and interest are likely adding pressure to your situation.  Because tax debts continue to climb as time passes, taking quick action will save whatever equity remains and remove the dark cloud that lingers over your head. Whatever you do, don’t try to hide the issue or list your home before you’ve devised a strategy to free yourself from your lienholders’ entanglement, as this could lead to further costly delays.

Selling your home may be the solution to resolving your problem; however, the process is already fraught with stress, and the presence of a lien or tax problems will complicate matters. Therefore, you must clear this debt to sell the property and do so in a specified order dependent upon the status of the lienholder, such as primary or secondary mortgages or tax liens that are always primary. In more complicated cases, it’s advisable to work with a professional tax advisor or attorney to assist you. 

Once satisfied, whatever you do, ensure that you receive documentation that you paid off the debt with a recorded lien release, lien discharge, or satisfaction of mortgage. If you find that the lien is still on the house and have proof you’ve paid the taxes, you’ll need to file a request for a certificate of release before closing. selling your house Lynchburg VA. 

Liens and Tax Issues Don’t Have to Stop Your Sale

Selling a house with liens or tax problems isn’t just about finding a buyer, it’s about working with someone who knows how to navigate complexity, anticipate obstacles, and get the deal across the finish line.

At Linken Investments, this is exactly where we add the most value. We work with homeowners facing lien and tax challenges every day, coordinating proactively with title companies, attorneys, and other professionals to identify issues early and resolve them before they derail the sale.

Because we are both licensed REALTORS® and local cash home buyers, we can offer you flexible solutions. Whether that means listing your home strategically on the MLS or structuring a direct cash sale that allows liens or taxes to be addressed at closing. You’re not locked into one path; you get to learn all your options in one place.

We operate by a simple code: we listen first, communicate honestly, and execute with precision. No runaround. No hidden fees. No last-minute surprises.

If liens or tax issues are holding you back from selling, let’s talk. One straightforward conversation can clarify your options and help you move forward with confidence. Call 434-390-2906 or fill out the form below.