What does an airline agent do when there’s a typo on a passport? Turn the passport’s owner away.
A lien on your house works similarly when you try to sell. Your home can be in good shape and priced right, yet one recorded debt in the public files can stop the closing until someone clears it.
Title problems show up far more often than most people expect. In fact, title companies estimate that 36% of all transactions need extensive, nonroutine work before the title is clear.
If a lien or another title problem is keeping you from selling your home, listing traditionally with a realtor may not be tenable. But don’t lose hope.
We buy homes as-is even if it has title issues. Get a free cash offer today, and find out how much your Manchester property is worth.
Typical Title Issues We Encounter
A title is the legal record of who owns your house and who else has a claim to it. Any unresolved claim on that record is called a cloud, and a lender won’t fund the loan until the cloud is gone.
There are many types of “clouds.”
Here are the most common ones we see:
- Property tax liens: The city records a lien when taxes go unpaid, and the balance grows with interest.
- Contractor liens: A contractor or supplier who wasn’t paid for work on the house can file a claim against it.
- Judgment liens: A creditor who wins a court case against you can attach the debt to your home.
- Unreleased mortgages: A loan you paid off years ago can still look open if the lender never filed the release.
- Missing heirs: An inherited house may have relatives with a legal share who never signed off.
- Recording errors: A misspelled name or wrong property description can put your ownership in question.
- Forged deeds: A fake signature in the chain of owners can give someone else a claim to your home.
Heir problems come up often because only 24% of American adults have a will.
Fraud is less common but far more expensive. Forgery and fraud account for 21% of the money title insurers pay on claims, with an average claim above $143,000.
The Problems of Unresolved Title Issues
A lien stays attached to your house after you list it. The title company finds it during the search, and the sale can’t close until the debt is paid or released. Leaving the lien in place leads to two problems.
Stalled or Canceled Sales
Most buyers rely on a mortgage, and their lender requires a clear title before it releases any money. When a lien takes weeks to settle, the buyer may walk away, and you have to start over.
The delay is even harder for owners who sell from out of state and can’t handle paperwork in person.
Rising Costs
Each month the lien stays open adds interest, and any legal action behind it adds attorney fees. Those costs come straight out of your equity.
Homeowners dealing with a recent job loss have the least room to absorb these costs.
state flag of nh
Title Laws and Regulations in New Hampshire
New Hampshire sets firm deadlines for unpaid property taxes and a court process for disputed ownership. Both affect how quickly you can sell. For sellers in northern Massachusetts, there are different state rules and a separate housing market to work around.
Tax Lien Deadlines
Once the city records a tax lien, interest runs at 14% per year on the full amount. If the taxes stay unpaid for two years after that, state law requires the tax collector to deed the property to the municipality. A sale before that deadline can pay off the tax lien because the balance comes out of your proceeds at closing.
Quiet Title Actions
Most other ownership disputes go to superior court through a quiet title action. The owner must name every person with a competing claim, and anyone left out isn’t bound by the court’s ruling. Tracking down each of those parties is a big reason these cases move slowly.
Probate Court Cases
Disputes that come out of an estate follow a separate path. The same statute sends those cases to the probate court, which also decides who inherits the property.
FAQs
Can I sell my house if the title isn’t clear?
In many cases, yes.
If there’s a title issue, the title company researches the problem first, and many liens are simply paid from your sale proceeds at closing.
However, with other issues, such as a missing heir, you will only be able to sell after a resolution.
Who pays the lien when I sell for cash?
The lien balance comes out of your proceeds at closing, just as it would in a traditional sale. We cover the closing costs, and you won’t owe a real estate commission because we buy the house directly.
How fast can a cash sale close with a title issue?
A sale with a clear title can close in about a week. A lien adds time for research, and the final date depends on how quickly the claim is paid or released.
Luckily, since we buy with our own funds, you won’t wait on a lender’s approval as well. It’s one of the reasons we’re one of the 10 best home buying companies in Massachusetts.
Nashua New Hampshire
Title Issues? Reach Out for a Free Cash Offer
A lien can hold up a traditional sale for months and shrink the equity you walk away with. At NH Home Buyers, we offer a faster alternative.
We buy houses as-is in Manchester, across New Hampshire, and in northern Massachusetts, and we work with our title company to clean up difficult title issues.
You can also pick a closing date that fits your plans, whether you need to relocate for work next week or want a month to prepare.
Request your free instant cash offer today to find out how much your home is worth if you want to sell my house fast, lien and all.
