Property with Liens or Title Issues


You have decided to sell your home. You have had it for a number of years and it has been a great place to raise your family, but now that you are getting older and need more space, you want to downsize. The only problem is that there is an old unpaid utility bill on the property, which means that you can’t sell it until the bill gets paid off. This can be frustrating, especially when you know that this issue will come up with any potential buyer who decides to look into buying your property due to other reasons as well (such as lien or title issues). Are you aware of the 5 Most Difficult Homeowners Face When Selling a House in Richmond, VA, including Difficulty Selling in a Slow Market and Property with Structural Issues.

Lien or title issues

A lien is a claim against the property of another person. It can be used to secure payment for services or materials provided, but it is also possible for someone to place a lien on your home without your knowledge.

A title issue refers to any problem with the paperwork that verifies ownership and right of possession of a property. These issues can include:

  • Missing documents
  • Incorrectly recorded documents (like incorrect names)
  • Unpaid taxes or fees

Unpaid property taxes and liens

Unpaid property taxes and liens are a problem for real estate buyers. They can cause serious issues with title, which is the legal ownership of the property. A lien is the claim against your home or business by another person or entity who has provided services to it, such as contractors and subcontractors who have done work on your place but haven’t been paid yet. It’s like having a mortgage on your home: if you don’t pay back what you owe them (in this case, your contractor), they can take possession of it until their claim has been satisfied

Mortgage lien

A mortgage lien is a security interest that allows a lender to take possession of the property if the borrower fails to repay the loan. A mortgage is similar to a deed of trust in that it creates an interest in real property and provides for its sale if there’s no other way for the lender to recover his/her money.

A mortgage is also called a “security instrument.” This means that it secures your obligation (loan) to pay back money you borrowed from someone else (the “mortgagor”), along with interest and fees associated with that loan.

Judgment lien

A judgment lien is a lien that has been placed on a property by a creditor who has won a judgment against the owner. A judgment lien is not the same as a mortgage lien, which is attached to your home when you take out financing to buy it.

If you have unpaid debts and fail to pay them back in accordance with court orders or agreements with creditors, those creditors may be able to place liens on your real estate property–in other words, they can legally hold onto part of its value until their claims are satisfied. This means that if anyone buys that house from you after those debts are cleared up, he or she will still have to pay off those liens first before getting full ownership rights over it.

Real estate attorney

If you’re selling a property, an attorney can help you avoid liens and title issues. If you’re buying a property, an attorney can help you resolve liens and title issues. An experienced real estate attorney can also refinance your home loan to obtain better terms or lower your monthly payments.

Discounted sale price

The discounted sale price is the difference between the fair market value of the property and the amount owed on it. It’s what a buyer would pay to buy your home, and it’s also what you would accept as a seller if someone came along with cash in hand to purchase your property.

The discounted sale price is also known as “redemption value,” since it represents how much money would be left after paying off any liens against your home (e.g., mortgages).

It’s important to understand your options

If you have liens on your property, it is important to understand what they are and what options you have.

A lien is a claim on the property that must be paid off before a buyer can take title to it. Liens can be paid off by either the seller or buyer of the property, but they must be resolved before closing takes place. If there are multiple liens against a piece of real estate, then all those claims must be satisfied by either party involved in order for them both to receive clear title at closing time.

If you’re selling a piece of real estate with liens attached (or even if there isn’t one), then it may be wise for sellers like yourself who wish not only avoid lawsuits but also gain better offers from potential buyers who may want some type discount due to these issues existing beforehand


If you have liens on your property, it is important to understand what they are and what options you have. The best thing to do if you have questions about how these issues might affect your sale is to contact a real estate attorney who can help guide you through the process. RVA Home Buyers may be able to help. We Buy Houses in Richmond, VA.

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