Key Takeaways

Key Takeaways Title issues like liens and judgments don't automatically mean you can't sell your Troy property Different types of liens have different solutions — some can be negotiated down or resolved at closing Cash buyers and investors often purchase properties with title problems that traditional buyers won't touch Troy's competitive market means clean-title properties sell fast, but problem properties need specialized buyers

Selling Your Troy, Michigan Home With Title Issues: When Liens and Judgments Complicate Everything

Look, here's the deal — I get calls every week from homeowners in Troy who discovered their property has title issues right when they're trying to sell. Maybe it's an old contractor's lien from work done years ago, or an IRS lien they didn't know about, or HOA fees that spiraled into a judgment. Whatever it is, they feel stuck.

I'm Charles "Uncle Charles" Hernandez, and through HOMESELL USA, I've helped thousands of property owners across Michigan deal with exactly these situations. Troy's real estate market is competitive — with median home prices around $485,000 as of February 2026 — but when your property has title problems, you're playing by different rules.

What Are Title Issues and Why Do They Matter in Troy?

A title issue is anything that prevents you from having clear, marketable ownership of your property. Think of your title as your property's birth certificate — if there are problems with it, traditional buyers and their lenders won't touch your house.

Troy sits in Oakland County, and I've seen every type of title problem you can imagine here. The city's mix of older homes from the 1970s and newer developments means you get everything from ancient easement disputes to recent construction liens.

Here's what makes Troy tricky: the market is hot enough that buyers have options. When they can choose between your house with a lien and the clean-title property down the street, guess which one they pick?

The Most Common Title Problems I See in Troy Properties

Mechanics Liens

These come from contractors, subcontractors, or suppliers who didn't get paid for work on your property. I had a Troy homeowner call me last month — previous owner had a pool installed in 2024, contractor never got his final payment, and boom — $18,000 lien on a house she just inherited.

Mechanics liens in Michigan are serious business. Contractors have 90 days from their last day of work to file, and once it's filed, it attaches to your property.

Tax Liens

The IRS doesn't mess around. When someone owes federal taxes, the IRS can put a lien on all their property, including real estate. I've seen these range from $5,000 to $500,000. The good news? IRS liens can often be negotiated or resolved at closing.

Michigan also allows county and local tax liens. Oakland County is pretty aggressive about collecting property taxes, and Troy has some of the higher property tax rates in the state — around $25 per $1,000 of assessed value.

HOA Liens

Troy has numerous subdivisions with homeowner associations, especially in the newer developments off Big Beaver Road and around the Somerset Collection area. When HOA fees go unpaid, associations can file liens. I've seen situations where $2,000 in unpaid fees turned into $8,000 liens after legal fees and interest.

Judgment Liens

These come from court judgments — credit card debt, personal loans, business debts, divorce settlements. Once someone gets a judgment against you in Michigan, they can attach it to your real estate. The judgment follows the property, not just the person.

Child Support Liens

Michigan is tough on child support enforcement. The state can put liens on property for unpaid support, and these liens have to be satisfied before you can sell with clear title.

Why Traditional Sales Don't Work With Title Issues

Here's what happens when you try to sell a Troy property with title problems through traditional methods:

First, no conventional buyer will touch it. Their lender orders a title search, finds the liens, and kills the deal. Even cash buyers usually run when they see title problems — they don't want the hassle.

Second, real estate agents often don't know how to handle these situations. They're trained to sell clean properties in Troy's competitive market, not navigate complex title issues.

Third, title companies get nervous. They have to insure clear title, and liens make that impossible without resolution.

Your Options When You Have Title Problems

Pay Off the Liens

The obvious solution — if you have the money. Sometimes this makes sense, especially if the liens are small compared to your home's value. With Troy home values averaging nearly $500,000, a $10,000 lien might be worth clearing.

But I've seen situations where the liens exceed the property value, or the homeowner simply doesn't have the cash. That's when you need other options.

Negotiate Lien Reductions

Many lienholders will accept less than the full amount, especially if they think collection is uncertain. The IRS has an Offer in Compromise program. Contractors might take 60 cents on the dollar rather than wait years for payment.

This takes time and expertise though — not something most Troy homeowners want to tackle themselves.

Sell to a Cash Buyer Who Handles Title Issues

This is where companies like HOMESELL USA come in. We buy properties with title problems all the time. We can either resolve the liens at closing or factor them into our purchase price.

We handled a property in Troy last year with $45,000 in various liens. The homeowner thought the house was unsellable. We worked with the lienholders, negotiated reductions, and closed in three weeks.

How the Resolution Process Actually Works

When HOMESELL USA purchases a Troy property with title issues, here's what typically happens:

We order a comprehensive title search to identify every lien, judgment, and encumbrance. Then we contact each lienholder to determine payoff amounts and negotiate where possible.

For mechanics liens, we often find the contractor just wants to get paid something rather than continue fighting. For tax liens, we work with the taxing authorities on payment plans or offers in compromise.

At closing, liens get paid from the purchase proceeds in order of priority. Federal tax liens come first, then property taxes, then other liens based on recording dates and Michigan lien law.

What This Means for Troy Property Values

Troy's market remains strong — the city's excellent schools, proximity to major employers like General Motors and Ford, and location near I-75 keep demand high. But properties with title issues trade at significant discounts.

A clean-title home in Troy might sell for full market value in 30 days. The same house with $20,000 in liens might sit on the market for months and eventually sell for $40,000-50,000 under market value — if it sells at all through traditional channels.

That's the reality of title problems. They don't just delay your sale; they cost you money.

Special Considerations for Troy Properties

Troy has some unique factors that affect title issues:

The city has been aggressive about code enforcement, especially in older neighborhoods. Code violations can turn into liens if not addressed.

Troy's high property values mean lienholders are more likely to pursue collection. A $15,000 lien against a $100,000 house might not be worth pursuing, but against a $500,000 Troy property, creditors pay attention.

Oakland County's recording system is computerized and efficient, which is good for title searches but bad if you're hoping old liens got lost in the system.

When to Call for Help

Look, I've seen this a hundred times — homeowners in Troy discover title problems and panic. They think their property is worthless or unsellable. That's rarely true.

Every situation is different. Maybe your liens can be resolved for pennies on the dollar. Maybe the lienholders will work out payment plans. Maybe you need a cash buyer who handles these problems daily.

What I always tell people is this: whether you sell to us or someone else, get educated about your options. Don't let title problems trap you in a property you need to sell.

We work with Troy homeowners every month who thought their situations were hopeless. Most of the time, there's a solution — you just need someone who knows how to navigate these waters.

If you're dealing with title issues on your Troy property, give Uncle Charles a call. No pressure, no judgment — just straight answers about what you're facing and what options you have. Because every problem property has a solution; you just need to know where to look.

Frequently Asked Questions