If you’re thinking about selling your house in New Orleans, one thing you should know about is whether there are any liens against the property.
A lot of homeowners don’t think about liens until they’re getting ready to close. Sometimes, they don’t even realize a lien exists.
I’ve seen how unexpected title problems can complicate a real estate transaction, especially when a property has been in the same family for years or needs major repairs.
At NOLA Buys Houses, we’ve been buying and renovating houses throughout Greater New Orleans for more than 20 years. We understand that selling a house isn’t always as simple as finding a buyer and agreeing on a price.
So, what exactly is a property lien, and can you still sell your house if you have one?
Let’s take a closer look.
What Is a Property Lien?
A property lien is a legal claim or security interest connected to a property, usually because money is owed or another legal obligation exists.
Some liens are completely normal.
For example, when you purchase a house with a mortgage, the lender typically records a mortgage against the property.
Other liens can result from unpaid taxes, court judgments, or construction work that hasn’t been paid for.
Having a lien doesn’t automatically mean you can’t sell your house.
However, it may need to be paid, released, or otherwise addressed before the buyer can receive clear title.
What Types of Liens Can Affect a New Orleans Property?
There are several types of liens and recorded claims homeowners may encounter.
Mortgage liens: If you still owe money on your mortgage, the loan is normally paid off from the proceeds when you sell.
Tax liens: Unpaid property taxes or certain other tax debts can create claims that need to be resolved.
Contractor liens: In Louisiana, qualifying contractors, subcontractors, and suppliers may have rights under the state’s Private Works Act when they aren’t paid for certain work or materials.
Judgment liens: Some court judgments can create claims against real estate when properly recorded.
Other claims: Depending on the circumstances, a property may have additional recorded obligations or legal issues affecting its title.
Not every unpaid bill automatically becomes a lien. The type of debt and applicable legal requirements matter.
How Do You Find Out If Your House Has a Lien?
One of the best ways is to have a title company conduct a title search.
In New Orleans, property ownership records, mortgages, liens, and other recorded documents are maintained through the Orleans Parish Clerk of Civil District Court’s Land Records Division.
You can also review available public records yourself.
However, understanding what those records mean isn’t always straightforward.
A recorded claim might already have been paid but not properly canceled in the public records.
That’s why I recommend working with a title professional who can identify potential issues and explain what needs to happen before closing.
Can You Sell a House With a Lien in New Orleans?
Yes, in many cases.
Let’s say you own a house in Gentilly and have a mortgage payoff of $110,000, along with a $5,000 recorded lien.
You agree to sell the house for $190,000.
If the amounts are verified and there are enough funds available, the closing company may be able to arrange payment of both obligations from the sale proceeds.
That would leave $75,000 before other closing expenses, taxes, or adjustments.
The important thing is that the title issues are properly handled.
You shouldn’t assume a lien will disappear simply because the house changes ownership.
What If You Can’t Afford to Pay the Lien?
This is where homeowners sometimes feel stuck.
Maybe you’re already struggling financially, or your house needs expensive repairs.
You might not have enough savings to pay off a lien before putting the property on the market.
Depending on the situation, you may be able to pay the amount owed from the money you receive at closing.
You could also discuss a settlement or payment arrangement with the creditor.
If the lien is incorrect, expired, or already satisfied, a title professional or attorney may be able to help determine the proper cancellation process.
However, if the sale proceeds aren’t enough to cover all required obligations, additional negotiations or funds may be necessary.
What About Liens on Inherited Houses?
Inherited properties can sometimes come with unexpected complications.
Maybe you inherited a shotgun double in Uptown or an older house in Mid City.
The property may have an outstanding mortgage, unpaid taxes, or other recorded claims.
There could also be succession issues that need to be addressed before ownership can be transferred.
We’ve encountered situations where resolving ownership and title questions was just as important as evaluating the house itself.
Before selling an inherited property, I recommend confirming who legally owns it and having the title examined.
An experienced Louisiana succession attorney may be needed if the ownership hasn’t been properly established.
Can You Sell a House With Liens As-Is?
Yes, depending on the nature of the liens and whether the title issues can be resolved.
Selling a house as-is generally means you’re not agreeing to make repairs or improvements before closing.
It doesn’t automatically eliminate mortgages, tax debts, or other legal claims.
At NOLA Buys Houses, we buy houses in their current physical condition, including houses with foundation problems, roof damage, and years of deferred maintenance.
We can also evaluate properties that have complicated title situations.
Our title company helps identify outstanding obligations so we can determine whether a purchase is possible.
Should You Fix Title Problems Before Listing?
If you know your property has a lien, it’s usually better to address it early.
Waiting until the last minute can delay closing or cause a buyer to reconsider.
Start by requesting the amount owed, confirming whether the claim is valid, and asking what documentation is required to release it.
If you’re planning to list with a real estate agent, let them know about any known title problems.
If you’re considering selling directly to a cash buyer, explain the situation upfront.
That allows everyone to understand what needs to be resolved.
Thinking About Selling Your New Orleans House?
A property lien can complicate a sale, but it doesn’t always prevent one.
Whether your house has an outstanding mortgage, unpaid taxes, or other title issues, the first step is understanding exactly what’s owed.
At NOLA Buys Houses, we buy houses throughout New Orleans, including Gentilly, Hollygrove, Lakeview, Uptown, and Mid City.
We buy houses as-is, without requiring repairs or cleanouts, and there are no real estate agent commissions when you sell directly to us.
We also cover our standard purchase closing costs.
Call or text 504-264-1407, or visit www.nolabuyshouses.com for a free, no-obligation cash offer.
We’ll take a look at your property and help you understand whether selling directly to us makes sense for your situation.