Sell a house with liens

By Huge Cash Offer, Phoenix · Updated October 3, 2026

Common liens on Phoenix-area houses

• Mortgage and HELOC. Paid off at closing.
• Judgment liens. A recorded judgment becomes a lien on the debtor's real property in that county for ten years (ARS 33-964). Arizona's homestead exemption, $400,000 of equity in the home you live in (ARS 33-1101), is paid to you before most judgment creditors.
• IRS and state tax liens. Paid from proceeds, or the IRS can issue a certificate of discharge for a sale (IRS Publication 783).
• HOA liens. Unpaid assessments are paid from escrow. The HOA's resale and lien statement fees are capped by statute (ARS 33-1806).
• Mechanics' liens. From unpaid contractors. They can be paid, negotiated, or bonded around with a surety bond for 150% of the claim (ARS 33-1004).
• Property tax liens. Redeemed through the county treasurer at closing.
• Solar UCC filings. Financed or leased solar is often recorded as a fixture filing. The solar company has to be paid off or approve a transfer.
• City liens for code abatement, weed cutting, or unpaid utilities.

How title handles them

When escrow opens, the title company runs a search and issues a title commitment listing every recorded lien. It requests a written payoff from each lienholder. On the closing statement, each payoff is listed line by line and paid directly from the buyer's funds. You see exactly what was paid before you sign.

When liens are more than the equity

Some lienholders will take less than the full amount to be paid now instead of waiting. That is especially common with older judgments, collection accounts, and medical debt. You or your attorney ask for a written payoff at the reduced amount before closing. A mortgage lender that has to take less is a short sale and needs formal approval.

Liens that are not really yours

Judgments sometimes attach to the wrong person with a similar name. Title can often clear these with a statement of identity, a short form confirming you are not that person. Old liens that were paid but never released can be cleared with proof of payment.

When a cash sale is the wrong choice

If the liens are small and the house is ready to list, liens alone are not a reason to sell for cash. Title handles them either way. A cash sale fits when the liens come with a house that needs work, a tight deadline, or a payoff that needs negotiating.

How a sale to us works with liens

Tell us what you know is owed. We open title right away, so the full list shows up early, and we make an offer based on what you would actually walk away with. If a negotiation is needed, we tell you which lienholders to call and what to ask for.

General information for Arizona homeowners, not legal, tax, or financial advice. Huge Cash Offer is a home buyer, not a law firm, lender, or housing counselor. Laws and fees change; check the linked sources.