Key Takeaways

Key Takeaways Title issues don't make your Detroit property unsellable — but they do eliminate traditional buyers and require specialized expertise to navigate liens, judgments, and encumbrances. Detroit's low property values make title problems especially challenging — when liens total $25,000 on a $60,000 house, traditional math doesn't work for most buyers or sellers. Professional investors can handle what individuals cannot — companies like HOMESELL USA have the resources to negotiate with multiple lienholders and clear complex title issues at closing. Acting quickly often saves money — liens accrue interest and fees over time, and holding onto problem properties costs money in taxes, insurance, and potential code violations.

Selling Your Detroit House With Title Issues: Liens, Judgments, and Problem Properties in 2026

Look, I've been helping folks in Detroit deal with problem properties for years, and if there's one thing I've learned, it's this: title issues don't have to be the end of the world. Whether you're dealing with IRS liens, HOA judgments, or mechanics liens that seem impossible to sort out, there are ways to move forward.

I had a homeowner call me just last month from Detroit's East Side. She inherited her grandmother's house on Gratiot Avenue, only to discover it had $15,000 in back taxes, a mechanics lien from roof work that was never paid, and an old HOA judgment from 2019. She thought she was stuck with an unsellable house. Spoiler alert: she wasn't.

Detroit's Current Real Estate Reality

Detroit's housing market in 2026 is still recovering, with median home prices around $75,000 to $85,000 depending on the neighborhood. While that's significantly lower than the national average of $420,000, it creates unique challenges for properties with title issues. When your house is worth $60,000 but has $25,000 in liens attached, traditional buyers and lenders run for the hills.

The good news? Detroit has seen steady improvement in recent years. The city has streamlined some of its tax foreclosure processes, and there are more resources available for homeowners dealing with problem properties. But here's the deal — you still need to know what you're up against.

Common Title Issues I See in Detroit

Property Tax Liens

This is the big one in Detroit. With the city's financial struggles over the past decade, property tax liens are everywhere. Michigan allows counties to foreclose on properties with three years of unpaid taxes. In Wayne County, where Detroit sits, I've seen properties with tax liens ranging from $3,000 to $50,000 or more.

Here's what most people don't understand: these liens don't just disappear when you try to sell. They attach to the property, not the person. So even if you inherited the house and never lived there, you're dealing with the previous owner's tax problems.

IRS and Federal Tax Liens

Federal tax liens are particularly nasty because they take priority over almost everything else. I've seen Detroit properties where someone owed the IRS $80,000, and that lien was sitting on a house worth $45,000. The IRS doesn't care about your property value — they want their money.

HOA Liens and Judgments

Even in Detroit's more affordable neighborhoods, HOA liens can pile up fast. Monthly dues of $50 or $75 might not seem like much, but when they go unpaid for years, with interest and legal fees, they can balloon to $10,000 or more.

Mechanics Liens

These come from unpaid contractor work. Maybe someone hired a roofer, plumber, or electrician and never paid the final bill. In Michigan, contractors have 90 days to file a mechanics lien, and once it's filed, it can sit there for years.

Judgment Liens

These are court-ordered liens from lawsuits, credit card companies, medical bills, or other legal judgments. They're common in Detroit, where many residents have faced financial hardships.

Why Traditional Sales Don't Work

Here's the reality: traditional buyers getting bank loans can't touch properties with serious title issues. Lenders won't approve mortgages when there are unresolved liens or clouds on the title. Even if you find a cash buyer, most will run when they see a messy title report.

Real estate agents often don't want to deal with these properties either. They're complicated, time-consuming, and the commission on a $60,000 Detroit house doesn't justify the headache of navigating multiple liens and title problems.

Your Options for Selling

Option 1: Clear the Title Yourself

This means paying off all the liens and judgments before selling. Sometimes this makes sense, especially if the liens are small and the property value is higher. But in Detroit's market, you might pay $20,000 to clear liens on a house worth $50,000. That math doesn't work for most people.

Option 2: Negotiate with Lienholders

Many lienholders will accept less than the full amount, especially if the alternative is getting nothing. The IRS has an "Offer in Compromise" program. Tax authorities sometimes accept partial payment. HOAs might settle for 60 cents on the dollar.

But here's the catch: these negotiations can take months or years, and there's no guarantee they'll work out.

Option 3: Sell to an Investor Who Handles Title Issues

This is where companies like HOMESELL USA come in. We buy houses with title problems all the time. We have the resources and expertise to navigate complex lien situations, and we can close deals that traditional buyers and agents can't handle.

We don't expect you to clean up the title before selling. That's our job. We'll research all the liens, calculate what needs to be paid, and make you an offer based on the property's value minus the cost of clearing the title issues.

How the Process Actually Works

When you're dealing with title issues in Detroit, here's what typically happens:

Step 1: Title Search
We order a comprehensive title search to identify every lien, judgment, and encumbrance on the property. This usually takes 3-5 business days and costs a few hundred dollars.

Step 2: Lien Analysis
We contact each lienholder to verify amounts owed, including interest and fees. Sometimes the actual payoff amount is different from what shows on public records.

Step 3: Negotiation
We negotiate with lienholders for reduced payoffs when possible. Our experience and volume give us leverage that individual homeowners don't have.

Step 4: Calculate Your Net Proceeds
We determine the property's market value, subtract the cost of clearing all liens, subtract our profit margin, and make you an offer for what's left.

Step 5: Close the Deal
At closing, we pay off all the liens and transfer clear title to ourselves. You walk away with cash and no more headaches.

What You Can Expect in Detroit

Let's be realistic about the numbers. If your Detroit house is worth $70,000 but has $25,000 in liens, and we can negotiate those liens down to $20,000, you might net $35,000-$40,000 after our purchase. That's not getting rich, but it's getting out from under a problem property that was costing you money every month in taxes and maintenance.

I've seen too many Detroit homeowners hold onto problem properties for years, hoping the market will improve enough to make the math work. Meanwhile, they're paying insurance, taxes, and dealing with code violations or squatters. Sometimes the best move is to cut your losses and move on.

Special Considerations for Detroit Properties

Detroit has some unique challenges that affect properties with title issues:

Blight and Code Violations: Many properties also have city code violations that need to be resolved. These can add thousands to the cost of clearing a property for sale.

Property Tax Assessment Issues: Detroit has been reassessing properties, and some have seen dramatic increases in assessed value, leading to higher tax bills and potential new liens.

Neighbor Concerns: In some Detroit neighborhoods, abandoned or problem properties affect everyone's property values. Your neighbors might actually be relieved when someone finally deals with a problematic house.

When to Call for Help

Look, I'm not going to tell you that every house with title issues should be sold immediately. Sometimes it makes sense to fight through the process and keep the property. But if any of these sound familiar, it might be time to consider selling:

• The total liens exceed 40% of the property's value
• You're facing foreclosure and running out of time
• You inherited the property and don't want the headaches
• You've been trying to resolve the issues for months with no progress
• The property needs major repairs on top of the title problems

At HOMESELL USA, we've handled hundreds of Detroit properties with title issues. Whether you sell to us or find another solution, the most important thing is to understand your options and make an informed decision.

If you're dealing with liens, judgments, or other title problems on a Detroit property, give Uncle Charles a call. No pressure, no judgment — just straight answers about what you're facing and what your options really are. We've seen it all, and we're here to help.

Frequently Asked Questions

Frequently Asked Questions

Can I sell my Detroit house if it has tax liens?

Yes, you can sell a house with tax liens, but traditional buyers and lenders won't touch it. You'll need to either pay off the liens first or sell to an investor who specializes in properties with title issues. The liens will need to be resolved at closing, but an experienced buyer can handle that process.

How long do liens stay on a property in Michigan?

It depends on the type of lien. Property tax liens can lead to foreclosure after three years of non-payment. IRS liens typically last 10 years but can be renewed. Judgment liens in Michigan last 10 years and can be renewed for another 10 years. Mechanics liens must be enforced within one year of filing or they become invalid.

Will I owe money at closing if my liens are bigger than my house value?

Not necessarily. Many lienholders will negotiate for less than the full amount owed, especially if the alternative is getting nothing. At HOMESELL USA, we handle these negotiations and won't close a deal that leaves you owing money at the closing table.

Can I just walk away from a Detroit house with title problems?

Walking away isn't really an option. You'll still be responsible for ongoing property taxes, insurance, and maintenance. The liens don't disappear, and the city can still hold you responsible for code violations. It's better to address the situation directly by selling or resolving the title issues.

How quickly can I sell a Detroit house with title issues?

With the right buyer, you can close in 2-3 weeks. The title search and lien verification usually take 3-5 business days. Once we have all the information and make an offer you accept, we can close as soon as the title company can coordinate paying off all the lienholders and preparing the paperwork.