Key Takeaways

Key Takeaways Title problems are common in Houston - About 15% of Harris County properties have liens or judgments that complicate traditional sales Traditional buyers can't get financing - Properties with liens are essentially removed from the retail market until title issues are resolved Liens get worse over time - Ignoring tax liens, HOA liens, or judgments only increases the amount owed through penalties and interest Experienced buyers can help - Investors who specialize in title issues can structure deals to resolve liens and still provide cash to homeowners

Selling Your Houston Home with Title Issues: Liens, Judgments, and Problem Properties

Look, I've been buying houses in Houston for over two decades, and I can tell you this: Harris County has some of the most complex title situations I've seen anywhere. Between the rapid growth, multiple taxing authorities, and aggressive HOA enforcement, Houston homeowners are dealing with title problems that would make a traditional realtor run for the hills.

Just last week, I had a homeowner in Cypress call me about a house she inherited. Turns out it had three different liens on it - an IRS lien from 2019, a mechanics lien from a roofing contractor, and $12,000 in unpaid HOA fees. She'd been trying to sell through a realtor for eight months with zero success. Here's the deal: most buyers can't get financing on properties with title issues, and most real estate agents don't know how to handle these situations.

The Current Houston Real Estate Landscape and Title Problems

Houston's housing market in early 2026 is showing resilience despite national economic headwinds. The median home price has stabilized around $385,000, up slightly from 2025, but here's what most people don't realize - about 15% of properties in Harris County have some form of title issue that complicates traditional sales.

The energy sector recovery has brought both opportunities and challenges. While job growth is strong, many homeowners who struggled during the 2022-2024 downturn are now sitting on properties with accumulated liens and judgments. Add in Houston's notorious flooding issues and aggressive code enforcement, and you've got a recipe for title complications.

Common Title Issues I See in Houston Properties

Tax Liens - The Big Kahuna

Harris County, along with all the MUDs (Municipal Utility Districts) and other taxing authorities, can create a nightmare of back taxes. I've seen properties with liens from five different taxing entities. The good news? Tax liens can usually be resolved, but it takes someone who knows the system.

In Houston, property taxes are typically due by January 31st each year. Miss that deadline, and the penalties start piling up fast. By the time most people call me, they're looking at thousands in back taxes plus penalties and interest.

HOA Liens - Houston's Hidden Problem

Houston has hundreds of HOAs, and many of them are extremely aggressive about collections. I've bought houses with HOA liens ranging from $500 to $50,000. These liens can include unpaid dues, fines for violations, legal fees, and collection costs.

What makes HOA liens particularly tricky in Texas is that they can actually foreclose on your property for unpaid dues. It's not just a cloud on the title - it's a ticking time bomb.

Mechanics Liens

With Houston's construction boom over the past decade, mechanics liens are everywhere. Contractors, subcontractors, and material suppliers can all file liens against your property if they don't get paid. I had a situation in The Woodlands where a homeowner hired a contractor who didn't pay his subs. Three different companies filed mechanics liens, even though the homeowner had paid the general contractor in full.

Federal Tax Liens (IRS)

IRS liens are the granddaddy of all liens. When the federal government puts a lien on your property, it's serious business. The good news is that IRS liens can often be negotiated or subordinated, but it takes expertise and patience.

Judgment Liens

These come from court judgments - usually from lawsuits, unpaid debts, or divorce proceedings. In Texas, judgment liens attach to all real property in the county where they're filed. I've seen cases where someone got sued in Harris County, and now they can't sell their property in Montgomery County because of the judgment lien.

Why Traditional Sales Don't Work with Title Issues

Here's what most homeowners don't understand: when you have title problems, you're not competing in the traditional market anymore. Regular buyers can't get financing on properties with liens. Even cash buyers get spooked because their lender (if they ever want to refinance) won't touch it later.

Realtors typically don't know how to handle these situations either. They're trained to list clean properties for retail buyers. When they see a title report with multiple liens, most of them will politely decline or suggest you "clear up the title issues first" - which is often impossible without selling the property.

At HOMESELL USA, we specialize in exactly these situations. We know how to work with title companies, negotiate with lien holders, and structure deals that actually close. We've bought hundreds of Houston properties with title issues over the years.

How to Actually Sell a House with Title Problems

Get a Current Title Report

First, you need to know exactly what you're dealing with. A title company can run a report that shows all liens, judgments, and other encumbrances. Don't guess - get the facts.

Understand Lien Priority

Not all liens are created equal. Property tax liens almost always take priority. IRS liens have special rules. Understanding the priority helps determine what needs to be paid and what might be negotiable.

Calculate Your Real Equity

Take your property value, subtract all liens and payoff amounts, subtract selling costs, and see what's left. Sometimes homeowners are shocked to discover they're actually upside down once all the liens are calculated.

Work with Experienced Buyers

This is where companies like HOMESELL USA come in. We buy houses with title problems every day. We know how to structure deals, work with lien holders, and get properties closed even when the title looks like a disaster.

Recent Houston Success Stories

I just closed on a property in Spring Branch where the homeowner had $23,000 in various liens on a house worth about $180,000. Traditional sale would have been impossible, but we were able to negotiate with the lien holders, pay off what needed to be paid, and still put $15,000 in the seller's pocket.

Another case in Katy involved a house with foundation issues AND an HOA lien. The HOA was actually threatening foreclosure. We closed in 12 days and resolved everything. The homeowner avoided foreclosure and moved on with her life.

What Not to Do

Don't ignore liens hoping they'll go away - they won't. Don't try to hide them from potential buyers - title companies will find them anyway. And please don't pay thousands to "title clearing" companies that promise to remove liens for upfront fees. Most of those are scams.

Whether you end up working with HOMESELL USA or another investor, make sure they're experienced with title issues and can show you exactly how they plan to resolve each lien.

Frequently Asked Questions