Grand Rapids homeowners and real estate agent reviewing property lien paperwork at the kitchen table

What should I do if my Grand Rapids home has a lien on it when selling?

ByJason Pohlonski

When you’re preparing to sell your Grand Rapids home, discovering there’s a lien on your property can be both surprising and stressful. Maybe you found out during a title search, or your listing agent raised the issue as you were getting ready for market. Either way, a lien—whether for unpaid taxes, contractor work, a second mortgage, or another reason—can complicate your sale if you don’t handle it proactively.

Why does this matter? Because a lien clouds your home’s title, meaning you can’t legally transfer ownership until it’s resolved. If you try to close with an unresolved lien, your sale can be delayed or even fall through, costing you valuable time and money. The good news: with the right steps, most Grand Rapids sellers can clear liens and close on schedule.

Quick Answer

If your Grand Rapids home has a lien, you can still sell—but you’ll need to resolve the lien before closing. Typically, the payoff comes directly from your sale proceeds, and your title company handles the payment at closing. The key is to identify the lien early, communicate with your agent and title company, and be ready for extra documentation or negotiation if needed.

The sooner you address the lien, the less likely you’ll face last-minute closing delays or lose a strong offer. If you’re dealing with this, I’m happy to walk through it with you.

1. Confirm the Lien Type and Amount

The first step is to understand exactly what kind of lien is on your Grand Rapids home. Liens can be for unpaid property taxes, contractor work (mechanic’s liens), child support, a second mortgage, or even old HOA dues. Get a copy of your preliminary title report, which your listing agent or title company can provide, and verify the details.

Jason’s take: I always recommend requesting a title search before listing, especially if you suspect a lien or have had past financial issues. This avoids surprises after you accept an offer. In one recent transaction, a seller was shocked by a small but unresolved contractor lien from years ago—something we cleared up early to keep the sale on track.

2. Decide When and How to Pay Off the Lien

Most Grand Rapids sellers pay off the lien at closing using sale proceeds. Your title company collects the lien payoff amount and sends it to the creditor, releasing the lien so you can transfer clear title. In rare cases, you may need to pay it off before listing, especially if it’s a dispute that could scare off potential buyers or delay the sale.

Jason’s take: If you’re short on equity or facing a tight net sheet, know exactly how much will go to the lien and what you’ll walk away with. Your agent and title company can help you run these numbers before you accept an offer. For more on how liens can impact your closing, see this CFPB resource on property liens.

3. Position Your Listing for Minimal Buyer Concern

Once you’ve verified the lien and have a plan to resolve it, position your listing so buyers see a smooth path to closing. This means disclosing the lien if required, showing that you’re actively addressing it, and being prepared to share payoff documentation during escrow. If the lien is minor or already in the process of being released, most buyers won’t walk away, but clarity and communication are key.

If your listing isn’t generating activity because of title or lien disclosures, this is where sellers need to adjust their messaging. Highlight the steps you’re taking and reassure agents that your title will be clear at closing. The National Association of Realtors notes that transparency and proactive resolution are critical to keeping transactions on track.

4. Negotiate Offer Terms and Closing Timeline Strategically

Having a lien doesn’t mean you’re at the mercy of buyers or forced to take low offers. However, you’ll want to be realistic about your closing timeline and flexible if additional documentation or payoff verification is required. Build in a little extra time for your title company to confirm that the lien is fully released—especially if there’s a government or court process involved.

If the market isn’t responding or buyers are hesitant, consider offering a slightly longer closing or a credit for any inconvenience. This can help keep the deal together and avoid a failed closing. If you have multiple offers, weigh the strength of the financing and how quickly each buyer can close, given the lien situation.

Real Seller Case Study: Clearing a Contractor Lien in Grand Rapids

A Grand Rapids seller I worked with listed their home, only to find a mechanic’s lien from a roofing contractor who hadn’t been paid by a previous owner. We caught it during the title search before going live. The seller was able to negotiate a payoff directly with the contractor, and our title company coordinated the release. Because we addressed it before accepting offers, the home sold on schedule and the seller avoided a last-minute scramble or price concession.

Grand Rapids Market Insight

In Grand Rapids, I’ve noticed more sellers running into minor title issues—including liens—simply because they’re listing homes that haven’t changed hands in years. The good news: most buyers here are patient if you’re transparent, and local title companies are experienced at navigating these hurdles when given enough lead time.

Frequently Asked Questions About Selling in Grand Rapids

  • Can I sell my Grand Rapids home if there’s a lien on it?
    Yes, as long as the lien is paid off (usually at closing) and the title is cleared before the transfer. Work with your title company and agent to resolve it early.
  • What happens if I ignore a lien during my sale?
    Your sale can be delayed or canceled at closing if the lien isn’t paid off. Most title companies will not allow you to transfer ownership with a clouded title.
  • How much does it cost to clear a lien?
    You’ll need to pay the full amount of the lien, plus any interest or fees. Your title company will provide an exact payoff statement during escrow.
  • Should I disclose a lien to buyers?
    Yes, you should disclose any known liens on your property. It’s better to be upfront, as buyers and their lenders will discover them during the title search anyway.

Related Resources

About the Author


Jason Pohlonski
 is a Michigan licensed real estate salesperson with Keller Williams Grand Rapids East. He helps buyers and sellers throughout Grand Rapids, East Grand Rapids, Forest Hills, Ada, Byron Center, Jenison, Cascade, and surrounding West Michigan communities.

Jason began his real estate career in Chicago in 2004, later expanding his experience in Ann Arbor from 2014 to 2019, and has been serving clients in the Grand Rapids area since 2019.

With over 20 years of combined real estate experience across multiple markets, Jason focuses on helping clients make clear real estate decisions involving pricing, offer terms, inspections, appraisals, relocation timing, and buy-sell planning.

Industry Recognition

Jason is recognized by platforms and industry organizations including Zillow, Grand Rapids Magazine Real Estate All-Stars, and Real Producers for his work serving West Michigan buyers and sellers.

Jason also supports One More Moment, a nonprofit that grants wishes to late-stage cancer patients, by donating $100 for every successful closing.

Professional Disclosure

Jason Pohlonski
Michigan Licensed Real Estate Salesperson
License Verification: Verify Michigan License #6501386166
Brokerage: Keller Williams Grand Rapids East
Brokerage Office: 1555 Arboretum Dr. SE, Grand Rapids, MI 49546

📱 Call or text: 616-916-9770
📅 Schedule consultation:
https://calendly.com/pohlonskirealestate/30min
📧 Email: jpohlonski@kw.com

This article reflects real client experiences and market conditions in Grand Rapids and surrounding communities at the time of publication. Real estate outcomes can vary depending on market conditions, property characteristics, buyer demand, financing terms, inspection results, appraisal results, and lender requirements.

This article is for general informational purposes only and is not legal, tax, financial, insurance, engineering, inspection, or floodplain determination advice. Buyers and sellers should consult qualified professionals before making decisions involving financing, insurance, inspections, taxes, legal issues, or property risk.

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