A Guide for Pittsburgh Homeowners
Discovering a lien on your property can feel like a roadblock—especially when you’re ready to sell your home. In reality, while a lien can complicate the process, it doesn't make a sale impossible. Homeowners in Pittsburgh often face this scenario due to unpaid taxes, contractor disputes, or old debts they may not even remember. If you’re in this position and wondering how to move forward, this guide offers a clear path to selling your home legally and efficiently.
What Is a Lien?
A lien is a legal claim against your property by a creditor. It acts as a public notice that you owe money to someone—be it the IRS, a contractor, or a lender. Liens are typically recorded in the county where your property is located, and they must be addressed before the property can be transferred to a new owner.
In Pittsburgh, the most common types of liens include:
Mortgage liens (from unpaid home loans)
Tax liens (from unpaid property or income taxes)
Mechanic’s liens (from unpaid contractors or construction bills)
Judgment liens (from lawsuits or legal settlements)
Can You Legally Sell a House With a Lien?
Yes, but with conditions.
Selling a house with a lien is legal—but the lien must be resolved before or at the time of closing. In essence, you cannot pass clean title (ownership) to a buyer until the lien is paid or released.
This doesn’t mean you can’t list the house or accept an offer—it means you need to prepare for how the lien will be handled during the sale process.
What Happens If You Try to Sell Without Resolving the Lien?
If you enter into a sales agreement without disclosing or resolving the lien, the title company will uncover it during the title search. At that point, the sale will come to a halt until the debt is resolved.
Attempting to sell without addressing the lien could:
Delay or cancel the closing
Jeopardize the buyer’s financing
Result in legal consequences if you withheld information knowingly
It’s best to be proactive and deal with the lien upfront.
Steps to Selling a House with a Lien in Pittsburgh
1. Get a Title Search Done Early
Before listing the home, order a title search through a real estate attorney or title company. This helps identify any existing liens so you're not caught off guard during escrow.
You can’t fix what you don’t know—and some homeowners aren’t aware that liens from years ago are still active.
2. Understand the Lien Amount and Type
Once you identify the lien, find out the total amount owed, including interest and penalties. Also, understand what kind of lien it is. For example:
Tax liens may have strict timelines and consequences
Mechanic’s liens can often be negotiated down
Judgment liens might be attached to a personal debt rather than the property itself
Knowing this helps you plan your next move.
3. Negotiate or Settle the Debt
You don’t always have to pay the full amount. Many creditors are willing to settle for less, especially if they know the sale will cover some or most of the balance.
You or your attorney can contact the lienholder to discuss a payoff or partial release. Once the debt is paid (or settled), you’ll receive a lien release or satisfaction document that allows the sale to proceed.
4. Use Sale Proceeds to Pay Off the Lien
In many cases, if you have equity in the home, the lien can be paid off directly from the sale proceeds at closing. The title company or escrow agent will handle the payment and release.
For example, let’s say your house sells for $200,000, and there’s a $10,000 lien. After deducting this from the proceeds, the rest goes to you or toward other closing costs.
This method is common, especially for homeowners trying to sell their house fast in Pittsburgh despite outstanding financial obligations.
What If You Have Little or No Equity?
If you owe more than your home is worth—or the lien amount eats up most of your equity—you’ll need to look into other solutions, such as:
Negotiating a short sale with your lender
Paying the difference out-of-pocket
Seeking professional investors who are used to buying distressed properties
Some investors and companies that say we buy houses in Pittsburgh are willing to deal with homes that have liens. They often work with attorneys to resolve title issues as part of the purchase.
Can You Sell to a Cash Buyer with a Lien?
Yes—and in many cases, this is the simplest option.
Cash buyers don’t rely on mortgage approvals, which means fewer delays. They also tend to have experience with title issues and may even assist with the lien resolution as part of the deal.
If you’re under time pressure due to foreclosure, divorce, or relocation, selling to a cash buyer may help you sell a house fast in Pittsburgh, even with a lien attached.
Just make sure the buyer is transparent and willing to work with your title company or attorney to clear the issue legally.
Should You Work With a Real Estate Agent?
A seasoned real estate agent can absolutely help—but only if they’re experienced in handling properties with title complications. Be upfront with them about the lien so they can help you:
Price the home competitively
Disclose issues properly
Guide you through negotiations and closing
In some cases, agents may suggest partnering with an investor to move the sale forward quickly if the lien is significant.
Avoiding Future Liens
If you’ve managed to sell your home despite a lien, it’s important to avoid similar issues in the future. Here’s how:
Keep up with property tax payments
Resolve contractor disputes in writing
Monitor public records for surprise liens
Keep mortgage accounts in good standing
Homeownership comes with responsibility—but knowing the risks and your rights makes all the difference.
Final Thoughts
Selling a house with a lien isn’t easy—but it’s entirely doable with preparation, honesty, and the right help. Whether the debt is small or significant, there are clear steps you can take to move forward.
If you’re a Pittsburgh homeowner asking, “Can I sell my house with a lien on it?” the answer is yes—just be ready to address it before the closing table. From settling debts to working with experienced buyers who buy houses in Pittsburgh, your options are wider than they may seem.
In the end, the lien may be a hurdle—but it doesn’t have to be a dead end.
