Discovering a lien on your Massachusetts home can halt your sale plans. You’re ready to move forward, but the legal red tape creates doubt, delays, and financial stress. If you’re unsure what to do next, you’re not alone, and the good news is, you do have options.
Can you sell a house with a lien on it in Massachusetts?
Yes, you can sell a house with a lien in Massachusetts, but the lien must be paid off, settled, or legally addressed before the sale closes and title transfers to the buyer.
Whether it’s a tax issue, contractor claim, or judgment, there’s a clear path forward once you understand what you’re dealing with and get the right help.
Need to sell fast, even with a lien? Get a free cash offer from Boston Investors today by calling us at (617) 539-2221.
Types of Lien in Massachusetts
In Massachusetts, liens attach to your property’s title, not you personally. They must be cleared before closing to deliver a clean, marketable title. Here are the most common lien types that can appear in real estate transactions.
- Mortgage Liens
Mortgage liens are voluntary. They’re created when you take out a home loan, with the property acting as collateral. When you sell, the mortgage is paid off at closing. Still, this lien must be accounted for on the settlement statement and discharged properly.
If your mortgage is in default or you’re facing foreclosure, this lien becomes more urgent. Lenders may initiate foreclosure proceedings, further complicating the sale timeline and buyer negotiations.
- Tax Liens (Property, Federal, or Municipal)
Massachusetts allows municipalities to place a lien for unpaid property taxes, water, sewer, or other municipal fees. These are serious. Some cities have even sold tax lien certificates to investors, giving them foreclosure rights after a grace period.
If the IRS has filed a federal tax lien, it will also show up in a title search. The IRS and the local town must be paid before you close. These liens take priority and can block your ability to transfer a clean title.
- Judgment Liens
If someone sues you and wins a financial judgment, they can record a lien against your property. This commonly results from credit card debt, personal loans, or civil disputes. In Massachusetts, these liens can last for 20 years and make your property unsellable until cleared.
- Mechanic’s or Contractor Liens
If a contractor wasn’t paid for labor or materials, they can file a mechanic’s lien under strict Massachusetts timelines. Even small repair bills can cloud your title and prevent a successful sale.
- Estate Tax Liens
Massachusetts automatically places an estate tax lien on the property of any deceased owner. This lien remains until the estate pays any applicable taxes or files the correct paperwork, often Form M-706. Heirs must resolve this before selling inherited property.
What is the Impact of a Lien on Selling a Home?
A lien makes the title defective and unmarketable. Buyers won’t touch the property until the issue is resolved, and lenders won’t fund it.
Massachusetts law requires a clear title at closing, and that means all liens must be satisfied or released beforehand. There’s no workaround. If a lien is discovered late in the process, it can delay or cancel the deal.
These complications often lead to buyer hesitation, extended closing timelines, and, in some cases, foreclosure if it’s a tax lien.
Municipal tax lien foreclosures in Massachusetts are particularly aggressive, sometimes occurring over minor unpaid fees. You don’t want to let it get to that stage.
What Are the Options to Sell a Property With a Lien?
If you’ve found a lien on your home, don’t worry. You’ve got multiple options, and many sellers in Massachusetts resolve these issues every day.
- Pay the Lien in Full
The simplest and most effective route is to pay off the lien before or at closing. This clears the title and ensures the sale moves forward without obstacles. If you don’t have the funds upfront, using sale proceeds can still make this work.
- Negotiate a Settlement
You can often negotiate a payoff for less than the full amount, especially for older debts or judgment liens. Creditors may accept a lump sum or partial payment to avoid court action. Always get these agreements in writing.
- Contest Invalid Liens
If you believe a lien is inaccurate or unjustified, you can challenge it in court. Contractors who miss their legal deadline to file, or creditors who filed incorrectly, may lose their claim. A real estate attorney can help you resolve this quickly.
- Purchase a Lien Release Bond
In rare cases, sellers purchase a lien release bond to temporarily remove the lien and transfer the title. This is more common in commercial deals, but can be a short-term fix if time is tight.
- Use Sale Proceeds
Most lienholders will agree to accept payment at closing. The lien is paid directly from sale proceeds by the closing attorney or title company. This allows you to avoid paying out of pocket in advance.
- Seek Cash Buyers
Some cash investors or wholesalers specialize in buying homes with liens. They’ll purchase the property as-is and resolve the issue themselves. This typically comes with a discount, but it’s a fast way to move forward if you’re stuck.
Not sure which selling option fits your situation? Talk to a local expert and get your free offer now by calling Boston Investors at (617) 539-2221.
Ways to Clear a Lien in Massachusetts
Resolving a lien starts with clarity and the right documentation. Here’s how to deal with the most common situations.
- Pay Off the Lien Using Sale Proceeds at Closing
This is the most common approach. Once you receive an accurate payoff from the lienholder, the closing attorney collects the amount from your sale proceeds and issues payment at closing. The lien is then formally discharged and removed from public record.
- Negotiate a Settlement or Partial Payoff
Some creditors will accept a reduced amount. This is particularly helpful for judgment or contractor liens. The settlement must be documented and officially released through a lien discharge filing at the Registry of Deeds.
- Use a Bond or Certificate of Subordination (e.g., Tax Lien)
For federal or Massachusetts tax liens, you might be eligible for a certificate of subordination. This allows the sale to go through and lets the lien stay in place against other assets. It’s not common, but it’s possible with proper IRS or DOR paperwork.
- Estate Tax Liens Removal via Affidavit or Form M‑706
If the property was inherited, the estate’s representative must file Form M‑706 or an affidavit with the Massachusetts Department of Revenue. This confirms whether estate taxes are owed. Without this, the lien remains and blocks the sale.
How to Identify Liens on Your Property?
Don’t guess. Always verify. A title search through the Registry of Deeds or a licensed title company reveals any recorded liens. Real estate attorneys can also assist in identifying active claims and their payoff requirements.
Even if you think your property is lien-free, surprises can arise. Always verify before listing. This avoids unnecessary delays or failed closings later.
Do Liens Expire in Massachusetts?
Some liens have a shelf life, but don’t rely on time alone. In Massachusetts, judgment liens can last up to 20 years, while tax liens have different rules depending on the authority involved.
Mortgage liens expire only after full repayment and proper discharge. Mechanic’s liens expire if the contractor doesn’t file a lawsuit to enforce the lien within the required deadline, which is usually 90 days from the last day of work.
The bottom line: expired liens don’t automatically disappear. You’ll still need to formally release or discharge them before selling.
Step-by-Step Guide: Selling With a Lien in Massachusetts
Selling a home with a lien might sound daunting, but with a clear plan, it’s doable. This process requires precision, transparency, and the right team around you. If you’re proactive, you can move from a clouded title to a successful, stress-free closing. Below is a direct, actionable breakdown of how to make it happen.
1. Run a Title Search to Identify All Liens Early
Before listing your home or accepting any offers, the first step is to run a full title search. This reveals all existing liens on your property, whether you’re aware of them or not. Don’t rely on memory or assumptions. Liens can stem from unpaid taxes, forgotten contractor invoices, or unresolved judgments.
In Massachusetts, this can be done through the local Registry of Deeds, a title company, or a real estate attorney. The goal is to get a complete picture of what’s attached to your property legally, so there are no surprises down the line.
2. Verify Lien Types and Balances With Each Lienholder
Once you’ve identified the liens, it’s time to get specific. Who filed them? How much is owed? Are they still valid?
Contact each lienholder directly to confirm the outstanding balance, interest, fees, and any penalties. This step matters because old liens may have grown over time, or may even have expired without being removed from the record. Having exact figures gives you a solid foundation to negotiate or plan your payoffs.
3. Request Payoff Statements in Writing
Verbal quotes won’t cut it. You’ll need official payoff letters from each lienholder. These documents show the total amount due by a specific date, including interest and legal fees. They’re essential for preparing an accurate closing statement.
Title companies and closing attorneys will use these statements to distribute sale proceeds properly. If any lienholder isn’t paid in full or doesn’t issue a proper release document, your title remains clouded, and your sale may stall.
4. Negotiate or Resolve Each Lien With Payment, Settlement, or Legal Support
Now it’s time to deal with the liens head-on. If you have the funds, paying them off is the cleanest route. But many sellers successfully negotiate settlements, especially for older or disputed claims.
Your real estate attorney can guide this step, helping you reach agreements that work for both sides. In some cases, you may challenge liens you believe are invalid, like expired mechanic’s liens or improperly filed judgments. Legal support is key if you go that route.
The main goal is this: make sure every lien is cleared or properly accounted for by the time of closing.
5. Include Payoff Amounts in the Closing Statement
Once the payoff amounts are finalized, your closing attorney will prepare a settlement statement, also called a HUD-1 or closing disclosure. This outlines where every dollar is going, including payments to lienholders.
The attorney or title company will distribute those funds directly at closing. This ensures the liens are paid off immediately, without relying on the seller to transfer money after the fact.
This part must be accurate down to the cent. Any mistakes can delay disbursements, or worse, cause the deal to fall apart after signing.
6. Ensure Lien Releases Are Recorded Before or Immediately After Closing
Paying off a lien isn’t enough. The lienholder must also issue a release or discharge document, and it needs to be recorded with the appropriate Registry of Deeds in Massachusetts.
This final recording officially clears your property’s title and allows the new buyer to take clean ownership. Your attorney or title company usually handles this, but always confirm that it’s done promptly. Some sellers forget this step and find themselves stuck with a lingering lien on record even after selling.
Selling As-Is or to Cash Buyers
If resolving the lien feels overwhelming or you’re short on time, cash buyers may be your best option. These investors often buy homes with title issues, resolve them themselves, and flip the property.
Selling “as-is” means no repairs, no clean title required, and a faster timeline. While you may sell for less, it allows you to move on quickly, especially if the lien is small or negotiable.
Companies like HomeLight and Nunley Home Buyers specialize in these scenarios across Massachusetts. Just be sure to vet any buyer carefully before signing.
Why Pick Boston Investors to Sell a House With a Lien in Massachusetts?
When you’re facing a lien, you need someone who understands urgency, paperwork, and flexibility. That’s where Boston Investors come in. Founded by Gregory Asuncion, a local real estate investor, Boston Investors helps homeowners across Massachusetts sell fast, as-is, and without agents, showings, or commissions.
Whether you’re trying to avoid foreclosure, sell an inherited property, or just want to move on, this team can get it done, no repairs, no pressure.
Here’s why you should sell your lien house to us:
- Available around the clock: We operate 24 hours a day, 7 days a week, ready to assist whenever you need help.
- Buy houses in any condition: No need for repairs, updates, or cleaning. We purchase homes exactly as they are.
- Fast and fair cash offers: Get a strong cash offer within days, with no pressure or obligation to accept.
- No agents or commissions involved: You deal directly with the buyer, so there are no listing fees, showings, or middlemen.
- Specialized in lien and foreclosure cases: We help sellers resolve title issues and avoid losing their property to the bank.
- Support for unique situations: Whether it’s probate, divorce, job relocation, or a vacant home, we have experience with all types of complicated sales.
- Real solutions for real people: Boston Investors focuses on honest service, transparent communication, and quick results so you can move forward with peace of mind.
Selling a house with a lien in Massachusetts doesn’t have to be complicated. With the right help and a clear plan, you can resolve the issue and move forward quickly. Whether you pay off the lien or work with a local buyer like Boston Investors, the key is taking action early and confidently.
Tired of the hassle and want to sell your home as-is? Boston Investors can help with a free cash offer when you call us at (617) 539-2221.
