Judgments and Liens in Washington: How They Affect Selling or Buying a Home
Before We Begin: A Quick (But Important) Note
Real estate situations involving judgments, liens, bankruptcy, foreclosure risk, divorce, probate, or other legal or financial matters can vary widely based on timing, documentation, and individual circumstances. The information shared here is for general educational purposes only and is not legal, tax, or financial advice.
If you are currently represented by a real estate agent, please contact your agent directly. For legal guidance, speak with a qualified Washington attorney. For title-specific questions, a licensed title or escrow professional can provide clarity.
My goal is to help you understand how this typically works in Washington — so you can avoid surprises that delay or derail a transaction.
Judgments and Liens in Washington: How They Affect Selling or Buying a Home
Judgments and liens are one of the most common silent deal killers I see in Washington real estate.
Many homeowners don’t realize there’s an issue until:
They try to sell
They’re under contract
Title work comes back flagged
And buyers are often shocked to learn that a home can look perfect — but still be legally blocked from closing.
This post explains what judgments and liens actually are, how they affect buying or selling in Washington, and what options may exist when they show up.
1. What Judgments and Liens Actually Are
A judgment is a court ruling that says someone owes money.
A lien is a legal claim attached to property as security for that debt.
In Washington, liens can:
Attach to real property
Follow the property until resolved
Prevent clear title from transferring
This is why liens matter even when payments feel “old” or forgotten.
2. Common Types of Liens Seen in Washington Real Estate
Some of the most common include:
Judgment liens (credit cards, lawsuits, unpaid debts)
Tax liens (property taxes, IRS, state taxes)
Mechanic’s liens (unpaid contractors or labor)
HOA liens
Child support or spousal support liens
Each type has different rules — but most must be addressed before closing.
3. How Liens Are Discovered (And Why Timing Matters)
Liens usually surface during:
Title search
Escrow review
Refinance or sale preparation
This is why waiting until you’re already under contract can create stress, delays, or canceled deals.
If tax debt is involved, this post provides important context:
Behind on Property Taxes in Washington: What Happens Next and Your Real Housing Options
4. Can You Sell a Home With a Lien in Washington?
Sometimes — but not always.
Selling may be possible if:
The lien can be paid from sale proceeds
The lienholder agrees to release the lien
There is enough equity
Selling becomes difficult when:
Multiple liens stack up
Proceeds won’t cover balances
Legal approval is required
This is where early planning creates leverage.
5. How Judgments and Liens Affect Buyers
For buyers, liens matter because:
You cannot receive clear title with unresolved liens
Most lenders will not fund with outstanding liens
Closing can be delayed or canceled
This is why “we’ll deal with it later” is rarely a safe plan.
6. What Happens If Bankruptcy Is Also Involved
When bankruptcy overlaps with liens:
Trustee or court approval may be required
Some liens survive bankruptcy
Timing becomes critical
Selling under these conditions is possible — but coordination is essential, as explained in:
Selling a Home During Bankruptcy in Washington: What Requires Court or Trustee Approval
7. Judgments, Liens, and Pre-Foreclosure Pressure
Liens often show up alongside:
Missed mortgage payments
Pre-foreclosure notices
Short sale discussions
When timelines are tight, unresolved liens can eliminate options quickly. If foreclosure timing is already a concern, this post adds clarity:
Pre-Foreclosure in Washington: Can You Sell Before Losing Your Home?
8. Can Liens Be Negotiated or Settled?
In some cases, yes.
Depending on the lien type:
Payoff amounts may be negotiated
Settlements may be accepted
Releases may be issued upon payment
But this takes time, documentation, and the right coordination — especially when a sale is pending.
9. Common Mistakes That Make Liens Worse
Some of the most common missteps I see:
Ignoring old judgments
Assuming liens “expire” automatically
Listing without understanding payoff requirements
Waiting until escrow to ask questions
Liens rarely go away on their own — but they can often be managed with the right plan.
10. How I Help Clients Navigate Liens and Title Issues
When judgments or liens are involved, my role is to:
Identify issues early
Coordinate with title and escrow
Set realistic expectations
Protect transactions from unnecessary surprises
This isn’t about blame — it’s about clarity and control.
11. How This Fits Into the Money Mechanics Path
This post is step two in the money mechanics sequence:
Behind on property taxes
Judgments and liens: how they affect housing
Debt settlement vs bankruptcy: how lenders view each
Each topic addresses a different financial pressure point — without overlap.
Final Thoughts
Judgments and liens don’t mean a sale or purchase is impossible — but they do mean it can’t be treated casually.
The earlier you understand what’s attached to a property, the more options you usually have.
If you’re unsure whether a judgment or lien could affect your plans in Washington, having clarity early can save months of frustration later.
If you're planning a move or sale in Washington and want help understanding potential title issues before they become a problem, I’d love to help you create a plan that actually makes sense for your situation.
Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence