Can You Sell A House With A Lien In San Antonio, TX? 

Many homeowners don’t realize their property already has a lien, most commonly a mortgage lien from financing the purchase. While this is normal, there are different types of liens, and some are easier to handle than others. Certain liens can delay or even block a sale until they’re resolved, so knowing what kind is on your home is an important first step. In San Antonio, TX, where housing inventory is rising and competition is stronger, We Buy ALL Houses San Antonio helps homeowners address lien issues early and plan ahead to avoid surprises and put their home in a better position to sell.

Can You Sell A House With A Lien In Texas?

Yes, it’s possible to sell a property in Texas even if there’s a lien attached to it. In most cases, the lien simply needs to be satisfied before the ownership can officially transfer to the buyer. The good news is that resolving a lien and selling the property don’t always have to be handled as separate challenges. Often, the proceeds from the sale can be used to pay off outstanding debt, effectively clearing the lien at closing. 

That said, the ease of the transaction largely depends on the type of lien involved. Some liens are straightforward and can be released immediately once the payment is made, while others may require additional processing time. Sometimes it can take up to 30 days or more after the debt has been settled. Because of this, advance planning is essential to avoid delays during escrow and ensure the sale closes on schedule. 

While liens can add complexity to a real estate transaction, selling a home with a lien is a common and well-established process in Texas and across the country. With proper coordination, clear communication, and the right strategy, working with cash home buyers in San Antonio or in nearby cities can help homeowners successfully complete the sale while resolving their lien obligation.

What is a Lien?

A lien is a legal claim placed on a property that gives a creditor the right to collect money owed to them. It serves as a form of security, ensuring that the debt will be repaid, either through direct payment or through the value of the property itself. When a lien is in place, the property usually cannot be sold or transferred without first addressing that obligation. This means that until the lien is satisfied, ownership rights are limited. 

For example, with a mortgage lien, the lender maintains a financial interest in the home. While the homeowner has possession and use of the property, they only fully own the portion that has been paid off; the remaining interest belongs to the lender until the loan balance is settled. 

Types Of Liens And How To Resolve Them 

Liens generally fall into two main categories: voluntary and involuntary. 

Voluntary liens are the most common and are typically created with your knowledge and consent. A mortgage lien is a good example, since you agree to it when you use financing to purchase your home. 

Involuntary liens are more complex and may be placed on your property without your direct involvement or knowledge. These liens are usually the result of unpaid debts and can include items such as a mechanic’s lien filed by contractors. Because involuntary liens are often unexpected, they can create delays or complications during a home sale. 

Below are the most common types of liens that can impact your ability to sell a property.  

Tax Liens

A tax lien is placed on your property by a government authority, like your county tax office or the IRS, when required taxes are not paid. These may include property taxes or income taxes. Tax liens are considered priority liens, which means that they take precedence over most other claims attached to your property. 

In Texas, property taxes become delinquent on February 1st of each year. Once the taxes are delinquent, you normally have a limited time to resolve the debt before further action is taken against your property. And because tax liens involve government agencies, they usually take longer to process than other types of liens, often around 30 to 40 days. Buyers can withdraw from a transaction if a tax lien cannot be resolved prior to closing. 

How to Resolve Tax Liens 

• Pay the tax lien: To resolve tax liens, you’re generally required to pay the full amount owed, including any penalties and accrued interest. This can be done using the sale proceeds at closing or by paying the balance out of pocket before listing the property. 
• Set up a payment plan: In Texas, you may qualify for a repayment plan through the local taxing authority. The IRS also offers instalment agreements, which can be helpful if selling your property is your main priority and you need time to satisfy the debt. 
• Request a discharge of property: if you cannot pay the balance upfront, you may be able to request a discharge of property. This process removes the IRS lien from your home and attaches it to another asset. While this debt still remains owed, this option can allow you to sell your property without the lien blocking the transaction. 

Mortgage Liens

A mortgage lien is what allows most people to become homeowners by spreading the cost of a property over time. Standard mortgages run up to 30 years and include interest. This type of lien secures the loan against your property and ensures the lender has a legal claim until the debt is fully repaid. In Texas, mortgages can only cover up to 80% of the property’s value at the time of purchase to ensure homeowners a 20% equity in their home. 

Mortgage liens typically don’t prevent you from selling your home. Most mortgage agreements include a due-on-sale clause. This is usually handled automatically through the sale proceeds at closing. After the mortgage is paid off, the lien release may take anywhere from 30 to 60 days to be officially recorded. 

Issues with mortgage liens usually arise only when payments fall behind and the home’s value drops below the remaining loan balance. In these cases, it can place the property at risk of foreclosure, which is the most serious outcome. 

How to resolve mortgage liens 

• Pay the mortgage liens: Most mortgage liens are resolved during the closing process. The escrow or title company calculates the payoff amount, sends payment directly to your lender, and then distributes any remaining sale proceeds to you. 
• Request a Short Sale: if your home is worth less than the amount owed and you’re beyond payments, you may ask your lender to approve a short sale. This allows the property to be sold for less than the loan balance. In this scenario, the proceeds go to the lender and your credit score will be negatively affected. While not ideal, a short sale is generally less damaging than a foreclosure. 

Mechanic’s Liens

A mechanic’s lien is designed to protect contractors, subcontractors, and suppliers by ensuring that they’re paid for labor performed or materials provided on your property. This type of lien may be filed when work, such as a home renovation, repair, or improvement, has been completed, but payment was not received. 

Although a mechanic’s lien is considered an involuntary lien, you’re generally required to receive notice before its official filing. It’s also important to know that subcontractors or material suppliers that you may not have directly hired can still file a lien against your property if they were not paid for their work or materials. 

How To Resolve A Mechanics’ Lien

• Pay the mechanics’ lien: Paying the debt in full allows the claimant to issue a lien release, confirming the obligation has been satisfied. Once released, the lien can be removed from the county record, and similar to a mortgage lien, this payment can often be handled at closing through the escrow or title company. 
• Negotiate a settlement: if paying the full amount isn’t possible, you may be able to negotiate with the lienholder for a reduced payoff. Settlement agreements are common, especially when a property sale is pending. 
• Bond off the lien: You may also choose to post a surety bond, typically for about 110% of the lien amount. This transfers the lien from your property to the bond, allowing you to sell the home without the lien attached. Keep in mind that this option usually comes with additional costs, often around 1%-3% of the bond value. 

HOA Liens

If your neighborhood is governed by a homeowners’ association, you may be subject to an HOA lien if you fall behind on assessments, dues, fines, or other required fees. These obligations are outlined in the HOA’s governing documents, which you agree to when you purchase the property. Because of this agreement, the association has the legal right to place a lien on your home for unpaid balances. 

Before the HOA lien is officially recorded, the association is generally required to send multiple notices warning you of the delinquency. This provides time to communicate with the HOA, address the issue, or arrange payment. However, if the debt remains unresolved, an HOA lien can become serious, and in some cases, HOA liens may even lead to foreclosure, making them an important issue to resolve as early as possible. 

How to resolve a HOA lien

• Pay the HOA lien: You can resolve an HOA lien by paying the outstanding balance in full, either with your own funds or through the proceeds of a home sale. Once paid, the HOA will issue a lien release, which is recorded within 30 to 60 days. 
• Negotiate a settlement: Many HOAs are willing to work with homeowners, especially in well-managed communities. You may be able to negotiate a repayment plan, reduce penalties, or settle the balance for less than the full amount owed. Open communication can often prevent the situation from escalating further.

Judgment Liens

Judgment liens are placed on your property by a creditor who has won a lawsuit against you. These can result from unpaid credit card balances, personal loans, breach of contract claims, or other court-ordered judgments. In Texas, judgment liens can remain attached to a property for up to 10 years and may be renewed if not resolved. 

However, Texas homestead laws provide strong protection. In most cases, unsecured judgment liens cannot force the sale or foreclosure of your primary residence as long as it meets Texas homestead qualifications. Even so, these liens can still create a title issue and interfere with your ability to sell or refinance the property.  

How To Resolve Judgment Liens

• Pay the judgment lien: Judgment liens can often be satisfied using the proceeds from a home sale. Once paid, the creditor must file a “Satisfaction of judgment,” which releases the lien from your property. 
• Homestead Self-Release: If the judgment lien is based on unsecured debt, such as credit cards or personal loans, you may be able to file a homestead self-release. This removes the lien as a cloud on your title, allowing you to sell the property without the lien clouding the title. The debt itself is still owed, but it cannot be enforced against your homestead under Texas exemption laws. 

Child Support Liens

Child support liens are automatically placed on a property when court-ordered child support payments fall behind. In Texas, these liens can attach to real estate, bank accounts, and other assets. It is also important to note that child support liens don’t expire easily and may continue to accrue interest until the balance is fully paid. 

How To Resolve A Child Support Lien 

• Pay the lien: Child support liens are usually cleared by paying the total past-due balance, either with personal funds or through the proceeds of the home sale. After the debt is satisfied, the lienholder, most often the Texas Attorney General’s Office or the other parent, must issue a signed and notarized lien release or satisfaction document so the lien can be removed from the property records. 

How To Sell A House With a Lien on It 

Verify the Lien on Your Property 

Before selling, confirm whether any liens exist and who placed them. A title search from a title company will reveal all recorded liens. Additionally, since liens are public record, you can also check through your local county recorder’s office or online databases. 

Resolving Identified Liens

Once you identify the lien, determine its type and the appropriate resolution, which we have listed above. In many cases, liens can be paid off using the sale proceeds. If time allows, resolving the lien before listing can help avoid delays and make your property more attractive to buyers, especially if the lien is more complex than a standard mortgage. 

Preparing and listing the Property 

After you have determined the appropriate strategy to satisfy the lien, you can begin preparing the home for sale. This may include repairs, cleaning, or staging. Keep in mind that selling costs often total around 10% of the sale price, including closing costs and agent fees, so ensure the proceeds will cover both the lien and selling expenses—especially if you’re working with a company that buys homes in Windcrest or in nearby cities.

Sell the Property and Pay off the Lien 

At closing, a payoff statement is requested from the lienholder and handled by the escrow or title company. If the sale doesn’t fully cover the lien, you may need to contribute personal funds or negotiate a reduced payoff to complete the transaction. 

Clearing Mistaken Liens From Your Property 

Not all liens on your property are accurate. Errors can occur due to missed deadlines, improper notice, clerical mistakes, or even when a lien remains on your property after the debt has been paid because the lienholder failed to file a release of lien. 

In these situations, it’s essential to compile evidence, such as proof of payment or documentation showing the lien is invalid. If you identify an error, contact the lienholder immediately, provide your evidence, and request that the lien be released. 

If the lienholder is unresponsive or refuses to correct the mistake, you may need to pursue legal action to have the lien removed. In such cases, you will need to demonstrate that the lien is incorrect and shouldn’t remain on your property. 

Consulting with a real estate attorney is highly recommended, as an experienced attorney can guide you through the process, ensure your rights are protected, and help remove the lien efficiently, reducing delays in selling your home. 

Final Thoughts: Can You Sell a House with a Lien in San Antonio, Texas?

You can absolutely sell a house with a lien in it, and this is done more often than many homeowners realize! Selling a property with a lien simply requires careful planning and proper coordination to ensure all obligations are identified and handled correctly. By understanding the type of lien and choosing the right strategy, you can avoid delays, reduce complications, and help ensure a smooth and successful transaction. 

At We Buy ALL Houses San Antonio, we’ll purchase your home as-is and for cash. We specialize in problem properties such as those with complex and difficult liens, and offer homeowners a fast, hassle-free alternative to a traditional sale. 

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Contact us at (210) 300-3307 or fill out the short form below. We’d love to help you sell your home quickly and on your terms.