A tax lien on your California property usually does not prevent a sale. In most cases, the outstanding balance is paid from the sale proceeds through the escrow process at closing. You don’t come out of pocket before the sale. Osborne Homes buys lien-encumbered properties as-is and closes in as few as 7 days.
Osborne Homes is a real estate investment company, not a tax attorney or financial adviser. For complex lien situations – IRS liens, multiple creditors, or balances that approach the property’s market value – consult a California real estate attorney.
| Factor | Osborne Homes | Traditional Agent Listing |
|---|---|---|
| Lien handling | Paid from sale proceeds through escrow at closing — no out-of-pocket requirement before the sale | Lien appears on the title disclosure; conventional lenders may refuse to fund until it is cleared |
| Financing contingency | None — direct cash purchase | Buyer’s lender may require the lien to be resolved before funding |
| Property condition | As-is — no repairs required | Lender may also require repairs; combined with the lien, the buyer pool shrinks significantly |
| Time to close | 7–14 days | 60–120+ days, potentially longer if financing complications arise |
| Seller out-of-pocket before sale | None | May need to resolve the lien and fund repairs before a conventional buyer can proceed |
A delinquent property tax balance results in a lien recorded by the county tax collector. This is the most common lien Osborne Homes encounters. In most cases, the outstanding tax balance is paid from the sale proceeds through escrow at closing. The seller receives whatever equity remains after the payoff and closing costs.
An IRS federal tax lien is filed when a taxpayer has an unpaid federal tax debt and the IRS has assessed and demanded payment. Federal tax liens are recorded against all property the taxpayer owns, including real estate. For IRS lien situations, a California real estate attorney or tax professional should be consulted.
A judgment lien arises when a creditor obtains a court judgment against a property owner and records it against their real estate. Like other liens, it must be satisfied before clear title can transfer.
If the total outstanding liens approach or exceed the property's current market value, a standard sale may not fully cover the debt. In this situation, the homeowner should consult a California real estate attorney and contact the relevant lienholder — the county tax collector or the IRS — directly to understand the available options before proceeding with any sale.
Osborne Homes is a real estate investment company – not a real estate agent. We have purchased over 5,000 California properties since 2007.
Our cash offer is based on the property’s actual condition after a single walkthrough, with the lien situation factored in from the start – not revised after the title report comes back. All terms are provided in writing before any commitment is required: the purchase price, the closing date, and the structure of the payoff.
No last-minute reductions. No hidden fees. Osborne covers all closing costs.
This service is not legal or tax advice.
Submit your address and mention the lien - it does not disqualify your property. A local representative contacts you within 24 hours.
One walkthrough. One written offer with the lien factored in from the start. No surprises after the title review.
Once you accept, escrow coordinates the lien payoff directly. You do not need to contact the county or IRS independently. The remaining proceeds are wired to you at closing.
A tax lien does not have to mean losing your California home or spending months clearing debt before you can sell. Osborne Homes makes a written cash offer, and in most cases the lien is resolved from the sale proceeds through escrow – no out-of-pocket requirement before closing. Submit your address online or call today.
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