One of the most common surprises at North Carolina closings is the discovery of liens or judgments that the seller did not know existed. These can include unpaid contractor bills, court judgments, IRS tax liens, child support arrearages, and various other claims. The good news is that most can be resolved at closing, and a cash sale provides flexibility that traditional financed sales often do not.
Types of Liens Common on NC Property
Mechanic’s liens from unpaid contractors who performed work on the property. Tax liens from the IRS for unpaid federal taxes or from the NC Department of Revenue for unpaid state taxes. Judgment liens from court cases where the homeowner was found liable for damages or debts. Child support liens from accumulated unpaid support obligations. HOA liens from unpaid association dues. Bank liens from unpaid loans secured by the property.
How the NC Closing Attorney Finds Liens
The NC closing attorney runs a title search through the county Register of Deeds and a lien search through court records. Most liens that are properly filed will show up in this search. Some liens, particularly federal tax liens, may not show up in county records and require additional search at the federal level.
How Liens Get Resolved at Closing
Most liens are satisfied at closing by paying the lien holder from the sale proceeds. The NC closing attorney coordinates with each lien holder to confirm the exact payoff amount and obtains a lien release after payment. If the sale proceeds are insufficient to cover all liens, the closing may not be able to complete unless the seller brings cash to closing or the lien holders agree to accept less than the full amount.
Why Cash Sales Work Better With Liens
Traditional financed sales often fall apart when significant liens are discovered because the buyer’s lender will not fund the loan with outstanding lien issues. Cash sales do not have this constraint. The buyer can close even with complicated lien situations because the cash funds are not subject to lender approval. The NC closing attorney has more flexibility to structure the closing around the lien resolution.
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About J&B Homebuyers
J&B Homebuyers is a direct cash home buying company based at 5105 Hawthorne Lane in Shelby NC. The company has closed transactions involving various lien situations across western NC. Co founded in 2019 by Joshua Brooks and Jessica Quito. BBB A+ Rated since June 2023. Reach them at (704) 286-9391.
Sell Your House Fast Across Western North Carolina
J&B Homebuyers has purchased 55+ homes across Cleveland, Gaston, Catawba, Lincoln, and Mecklenburg counties since 2019. BBB A+ Rated since June 2023. Joshua Brooks or Jessica Quito, the co-founders, personally walks every property before any offer.
- Shelby NC | Charlotte NC | Gastonia NC | Lincolnton NC | Hickory NC
- Belmont NC | Bessemer City NC | Dallas NC | Mount Holly NC | Kings Mountain NC
Call (704) 286-9391 or visit jandbhomebuyers.net for a no pressure conversation.
