I have a lien on my house due to a settlement for a minor child in the home. How does it work when I try to sell the house? What if I don't have the money and won't get enough from the sale to cover the lien?

Hello S:

They'll get what there is, and you'll still owe the balance. The question after an event like you describe is, is it collectible. I think it is.

If they have a judgment, it would still follow you. If the lien is due to a settlement, then look to the settlement agreement. If you violate the agreement, they'll probably sue you and GET a judgment.

There are a lot of details you left out that would be helpful. Without more info, that's all I got.

excon

When a house is sold, all lienholders are paid off in the order that their liens are filed. The mortgage lender usually holds a primary lien. If you have a secondary mortgage or home equity loan, that usually takes second place. After that come liens filed due to judgements.

The title company should notify all parties that have a lien about the sale. Each party would then have a representative at the closing. You would then sit there signing checks from the proceeds of the sale to pay off all the liens. If there isn't enough to cover all the liens, then you walk out of the closing with your pockets empty and still owing the balance.