Can I Sell My Dallas House if I Have Liens on It?

Liens are more common than most people realize, and they're rarely the deal-killer homeowners fear them to be. Here's how it works.

What Is a Lien?

A lien is a legal claim against your property that gives a creditor the right to be paid from the proceeds of a sale. Common types of liens on Dallas properties include:

• Mortgage liens (standard — almost every home has one)

• Property tax liens (unpaid county or city taxes)

• Mechanic's liens (unpaid contractors or builders)

• Judgment liens (from court judgments against you)

• HOA liens (unpaid homeowners association fees)

  
  

How Liens Are Handled at Closing

When you sell your home, the title company conducts a title search to identify all outstanding liens. Those liens are then paid off from your sale proceeds before the remaining balance is disbursed to you.

For example: if your home sells for $180,000, you have a $120,000 mortgage balance, and a $5,000 mechanic's lien, the title company pays both of those off and you receive $55,000 (minus any other closing costs).

What If the Liens Exceed the Property's Value?

If your total liens — mortgage plus any additional liens — exceed what the property is worth, you're in a negative equity situation. Selling in this case typically requires a short sale, where your lender agrees to accept less than the full mortgage balance. Short sales require lender approval and take longer, but they're still significantly better for your credit than foreclosure.

Disputed or Unknown Liens

Sometimes liens are attached to a property in error, or a contractor has filed a lien that's already been resolved but not removed from the record. The title company will identify these, and they can usually be disputed and cleared during the closing process.

Cash Buyers Can Move Through This Quickly

Cash buyers are accustomed to working with lien situations. We're not going to walk away because your property has a tax lien or a contractor lien — these are standard issues that get resolved at closing. We'll give you a clear picture of what you'll net after everything is settled.

Ready to Take the Next Step?

Have liens on your Dallas property and not sure what to do? Ninebird Properties buys homes as-is and we'll walk you through exactly what you'll net at closing. Visit ninebp.com to request your fair cash offer.