How to Sell a House With Liens or Judgments in Washington
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Trying to sell a house in Washington is tough enough, but when your property has liens or judgments attached to it, the process can feel overwhelming. Whether it’s a tax lien from the IRS, an HOA lien, unpaid contractor bills, or even child support liens, these legal claims can stop a sale in its tracks. The good news? You can still sell a house with liens in Washington and in this ultimate guide, we’ll show you how.
This guide will explain what liens and judgments are, the different types that affect Washington homeowners, how they impact a home sale, and the step-by-step process for selling a lien-burdened property quickly and legally.
What Are Liens and Judgments?
A lien is a legal claim against property that acts as security for a debt. In Washington, liens can be voluntary (like a mortgage) or involuntary (like a tax lien). A judgment, on the other hand, is a court-ordered claim that can turn into a lien if not paid.
When you inherit or own a home with liens, the property cannot be sold with clear title until the lien is resolved or paid at closing. Title companies check for liens as part of every sale, which means you can’t bypass them in a traditional listing.
Common Types of Liens in Washington
1. Tax Liens
If you owe back taxes, the IRS or Washington State can place a lien on your home. These liens must be cleared before the property can transfer ownership. According to the IRS, a federal tax lien attaches to all of your property, including your house. Washington counties can also issue property tax liens for unpaid bills.
2. Mechanics Liens
Contractors, subcontractors, or suppliers can file a mechanics lien if they weren’t paid for work on your property. In Washington, these are governed under RCW 60.04. Even if the work was completed years ago, an unpaid contractor bill can block a sale.
3. HOA Liens
If your property is part of a homeowners association (HOA), unpaid dues can result in an HOA lien. Under RCW 64.38.100, HOA liens in Washington are enforceable and can even lead to foreclosure if ignored.
4. Child Support Liens
Washington State allows child support debts to attach as liens against property. These liens must be satisfied before a home can sell. More info is available from the WA Department of Licensing.
5. Medical or Hospital Liens
Hospitals in Washington can file liens for unpaid medical bills. These are outlined under RCW 60.44.
6. Judgment Liens
If a creditor sues and wins, the court can grant them a judgment. That judgment can then be recorded as a lien on your property (RCW 4.56.190).
How Liens Impact a Home Sale
Liens don’t mean you can’t sell your home but they do mean you can’t transfer ownership without dealing with them. Here’s how liens complicate sales in Washington:
- Title problems: Title companies won’t insure a sale if liens remain unresolved.
- Reduced offers: Buyers don’t want to inherit debt, so they’ll back out if liens aren’t cleared.
- Delays: Negotiating lien payoffs can add weeks or months to the sale timeline.
- Foreclosure risk: Some liens, like HOA or municipal liens, can lead to foreclosure if ignored.
Washington Laws on Liens
Here are some of the most relevant laws governing liens in Washington:
Step-by-Step Guide to Selling a House With Liens in Washington
- Identify liens: Order a title search to confirm what liens exist.
- Contact lienholders: Request payoff amounts in writing.
- Decide how to pay: Use sale proceeds, negotiate a reduced payoff, or let the buyer cover costs.
- Disclose liens: Washington requires full disclosure under RCW 64.06 (Seller Disclosure Act).
- Close the sale: Liens are paid off at closing before you receive proceeds.
Costs of Resolving Liens
How much will it cost to resolve liens? Here are typical ranges in Washington:
- Tax liens: $5,000–$100,000+
- Mechanics liens: $2,000–$50,000
- HOA liens: $1,000–$15,000
- Child support liens: $5,000–$50,000
- Medical liens: $2,500–$100,000+
Case Studies by City
Spokane
A homeowner in the Hillyard neighborhood inherited a home with $30,000 in unpaid medical bills. The lien prevented a traditional sale. The family chose to sell as-is to a cash buyer who paid off the lien at closing and allowed them to walk away with equity.
Tacoma
In Tacoma, an owner faced a mechanics lien after a contractor dispute. Under RCW 60.04, the lien was valid, but the seller negotiated a reduced payoff and completed the sale within 30 days.
Seattle
In Seattle’s Queen Anne neighborhood, a property had both an HOA lien and a child support lien. Traditional buyers backed out, but a cash buyer handled both liens through the title company and closed in under two weeks.
Yakima
A Yakima property inherited by three siblings had unpaid property taxes and a judgment lien. Probate delays stretched the process to nearly a year, but the final sale cleared all debts and distributed proceeds to the heirs.
FAQs About Selling a House With Liens in Washington
- Can I sell a house with a lien? Yes, but the lien must be cleared at or before closing.
- Do I have to pay liens myself? Not always. Liens can be paid from sale proceeds or negotiated down.
- What if I can’t afford to pay? A cash buyer can cover liens and adjust the offer price accordingly.
- Will buyers walk away if I have liens? Traditional buyers usually will, but investors and cash buyers often won’t.
- Can liens be negotiated? Yes. Many lienholders accept reduced payoffs if it ensures repayment.
- Can a lien stop closing? Yes. Title companies will not close until liens are resolved.
- What if I didn’t know about a lien? Title searches reveal them, but undisclosed liens can delay or cancel sales.
- How fast can I sell with liens? Cash sales can close in 7–14 days once payoffs are confirmed.
Why Cash Buyers Are the Best Option
Selling a lien-burdened house in Washington traditionally can take months or even years. Cash buyers offer a faster, simpler solution:
- No repairs or inspections required.
- Liens and judgments handled at closing.
- Cash offers made within 24 hours.
- Closing in as little as 7 days.
Helpful Resources
- RCW 60 – Liens
- RCW 60.04 – Mechanics Liens
- RCW 64.38.100 – HOA Liens
- RCW 4.56.190 – Judgment Liens
- IRS – Federal Tax Liens
- REI Branded Home Buyer
Work With REI Branded Home Buyer
If you’re facing liens or judgments on your Washington property, you don’t have to feel trapped. At REI Branded Home Buyer, we help homeowners resolve liens and sell their homes quickly. Whether it’s a tax lien in Spokane, a mechanics lien in Tacoma, or a child support lien in Seattle, we can make a fair cash offer and close on your timeline.
Take the Next Step
Are liens or judgments making it impossible to sell your Washington home? Contact REI Branded Home Buyer today. We’ll provide a no-obligation cash offer, handle liens at closing, and help you move forward without stress.
Contact Information
REI Branded Home Buyer
Phone: 509-769-3439
Email: info@reibrandedhomebuyer.com
Website: www.reibrandedhomebuyer.com
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Please consult with an attorney or financial professional regarding your specific situation.
