How do I find out what liens are on my house in Arizona?

A title company can run a preliminary title report that lists every recorded lien and encumbrance on the property, usually for a small fee or for free once a sale is underway. Liens can also be searched directly through the county recorder's office where the property sits, though a title report is more complete because it also catches state and federal filings.

What if the liens on my house are worth more than the house?

This is called being underwater or upside down on the property. A sale can sometimes still happen as a short sale, where each lienholder — often starting with the mortgage lender — agrees to accept less than the full amount owed. This requires the lender's or lienholder's approval in advance and typically takes longer than a standard sale.

Does a lien have to be paid off before I can sell, or can it come out of the sale price?

In a typical sale, liens are paid out of the sale proceeds at closing rather than by the seller in advance. The title company obtains a payoff statement from each lienholder, pays them directly from the funds at closing, and the seller receives what remains.

Seller guide

How to sell a house with a lien in Arizona

Q: Can I sell my house if it has a lien on it?

Yes, in almost all cases. A lien does not stop a sale — it must be paid off at or before closing, typically straight out of the sale proceeds through the title and escrow company. The seller does not need to pay it out of pocket first in a normal sale.

A lien on the title feels like it should block a sale entirely. In practice, liens get resolved as a normal part of closing far more often than owners expect. Here is how it actually works.

Common types of liens on Arizona houses

Mortgage lien. The most common lien of all — the loan used to buy or refinance the house. Paid off from proceeds at closing like any other sale.
Property tax lien. Placed by the county when property taxes go unpaid. In Arizona, counties can eventually sell tax lien certificates to investors, which is a serious deadline to watch — a delinquent tax lien can turn into a real risk of losing the property if it goes far enough.
HOA lien. A homeowners association can record a lien for unpaid dues, fines, or assessments, and in Arizona an HOA lien can, in some cases, eventually lead to foreclosure of the home.
Mechanic's or contractor's lien. Filed by a contractor, subcontractor, or supplier who was not paid for work or materials on the house.
Judgment lien. Recorded after a court judgment against the owner — from a lawsuit, unpaid medical debt, or a similar dispute — that attaches to real property the owner holds in the county.
IRS or state tax lien. Filed against a person for unpaid income or other taxes, which can attach to real estate they own.

How a lien actually gets resolved when you sell

Selling a house does not require paying off a lien out of pocket beforehand. The process runs through a title and escrow company:

The title company runs a title search and preliminary report, which lists every lien recorded against the property.
For each lien, the title company (or the seller) requests a current payoff statement from the lienholder — the exact amount needed to release it, which can differ from an old balance the owner remembers.
At closing, the title company pays each lienholder directly out of the sale proceeds, in the order liens have priority, and records the releases.
Whatever is left after every lien, the standard closing costs, and any commission (none, in a direct sale to us) goes to the seller.

This is routine work for a title company — it does not require special handling or scare off a legitimate buyer.

When liens add up to more than the house is worth

If the payoffs together exceed what the house will sell for, the sale becomes a short sale. Every lienholder that would not be paid in full — usually starting with the mortgage lender — has to approve accepting less than they are owed before the sale can close. This is slower and less certain than a normal sale, but it is a well-established path lenders use rather than take back a house through foreclosure. The earlier a lender is contacted, the more options exist.

How this works with us

Tell us about any liens you know about when you request an offer — we build the payoff amounts into the numbers up front rather than finding out at closing. Our title company handles ordering payoff statements and paying lienholders directly from the proceeds, the same as described above. If the situation looks like it may be underwater, we say so honestly rather than stringing you along toward a sale that will not close.

Frequently asked questions

Can I sell my house if it has a lien on it?

Yes, in almost all cases. The lien is paid off at closing out of the sale proceeds through the title company — you do not need to pay it out of pocket first.

How do I find out what liens are on my house?

A title company can run a preliminary title report listing every recorded lien, usually free once a sale is underway. You can also search the county recorder's office directly, though a title report is more thorough since it also catches state and federal filings.

What if the liens are worth more than the house?

That is called being underwater on the property. A short sale may still be possible if each lienholder — often the mortgage lender first — agrees in advance to accept less than they are owed. It takes longer and requires their approval.

Does a lien have to be paid off before I sell, or can it come from the sale price?

In a typical sale, it comes out of the sale proceeds at closing. The title company gets a payoff statement and pays the lienholder directly, and you receive what is left.

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This often comes up alongside inherited property, where liens or debts belonged to someone who has passed away. We buy houses with liens in Phoenix, Mesa, Tucson, and across Arizona.

This guide is general information about liens and is not legal or financial advice. Lien priority, payoff amounts, and short-sale approval depend on your specific lenders, lienholders, and county records — consult an Arizona real estate attorney or title company about your situation.