Sell a House With Liens in Colorado
Inherited property with liens attached? Property tax liens, HOA fees, judgments, or other encumbrances can be resolved through sale. We buy houses with liens and handle the complexities for you.
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Understanding Liens on Inherited Property
When you inherit property in Colorado, you inherit any liens attached to it. A lien is a legal claim against the property for unpaid debts. The good news is that liens are the estate's responsibility, not yours personally, and they are typically resolved through sale.
Many inherited properties have some form of lien, whether it is back property taxes, unpaid HOA dues, or medical judgments against the deceased. This does not prevent sale; it just means the liens must be paid from the proceeds before you receive your share.
The title company performs a title search to identify all liens, calculates payoff amounts, and handles distribution at closing. Your net proceeds are what remains after all liens and closing costs.
Common Types of Liens on Inherited Properties
Property Tax Liens
Unpaid property taxes create a lien that takes priority over most other debts. Colorado counties can eventually foreclose for unpaid taxes.
HOA Liens
Unpaid homeowners association dues, fines, or special assessments. Can accumulate quickly and often include late fees and attorney costs.
Mortgage Liens
Any remaining balance on the home loan. Must be paid in full at closing unless the property is sold short (with lender approval).
Judgment Liens
Court-ordered debts that have been attached to the property. Can include medical bills, credit card debt, or lawsuit judgments.
Mechanic's Liens
Unpaid bills from contractors, subcontractors, or suppliers who worked on the property. Valid if properly filed.
IRS/State Tax Liens
Federal or state tax debts that have been recorded against the property. May be negotiated in some cases.
How We Buy Houses With Liens
Share Property Information
Tell us about the property and any liens you are aware of. If you do not know all the liens, that is okay. The title search will reveal everything.
We Run a Title Search
Our title company partner performs a comprehensive search to identify all liens, judgments, and encumbrances. This gives us a complete picture.
You Receive a Net Offer
We present an offer that accounts for the property value and all liens. You see exactly what your net proceeds will be after liens are paid.
Liens Paid at Closing
At closing, the title company pays off all liens from the sale proceeds. You receive your net share with no liens remaining and clear title transferred to us.
Special Lien Situations
Liens Exceed Property Value
If the total liens exceed what the property is worth, you may have options including short sale (with lender approval), lien negotiation (some lienholders will accept less than full payoff), or deed in lieu of foreclosure. We can help explore these options.
Unknown or Disputed Liens
Sometimes title searches reveal unexpected liens or liens you believe are invalid. Our title company can help research and potentially challenge invalid liens. Valid liens must be paid but can often be negotiated.
IRS Liens
Federal tax liens require special handling. The IRS has 120 days to decide whether to redeem the property after sale. In practice, they rarely exercise this right, but the process must be followed correctly.
Lien-Related Questions
Yes. Liens are paid from the sale proceeds at closing. The title company handles calculating payoff amounts and disbursing funds to lienholders before distributing the remaining proceeds to you. You do not need to pay off liens before listing or accepting an offer.
Common liens on inherited properties include: property tax liens (unpaid taxes), HOA liens (unpaid association fees), mechanic's liens (unpaid contractor work), judgment liens (court-ordered debts), mortgage liens (remaining loan balance), and IRS/state tax liens (unpaid income taxes). A title search reveals all liens.
If the property is underwater (liens exceed value), you may be able to negotiate with lienholders for a short sale or deed in lieu of foreclosure. In some cases, you can simply walk away from the property without personal liability. We recommend consulting with an attorney for significantly underwater properties.
Generally, liens attach to the property, not the heirs personally. Heirs are not personally responsible for paying liens unless they co-signed the debt or want to keep the property. The estate is responsible for valid debts. If you sell, liens are paid from proceeds, not your pocket.
No. We make offers on properties with liens regularly. We work with title companies to identify all liens, calculate payoff amounts, and structure the closing to pay everyone appropriately. The final net proceeds to you account for all lien payoffs.
Have a Property With Liens?
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