Question 1

Can I sell if I owe more than the house is worth?

Accepted Answer

Sometimes, but that is not a standard payoff closing. If the mortgage and other required payoffs exceed the price, the lender may have to approve a short sale or another shortage process. A cash buyer cannot make a shortage disappear by writing a lower number. Title and your servicer define whether a full payoff is possible. Compare that path with a normal sale that actually clears the loan.

Question 2

Do liens have to be paid off before closing, or can they be paid from the sale?

Accepted Answer

Usually they are paid from sale proceeds at the title company, not out of pocket the week before. The closer orders payoff figures, collects those amounts on the settlement statement, and sends funds so releases can be recorded. You still need enough purchase price - or creditor consent - to cover what must be cleared. Paying cash changes how the buyer funds the purchase, not what the creditor is owed. Confirm figures with the title company, not with a remembered balance.

Question 3

Can I sell if there is a judgment lien against me personally?

Accepted Answer

Often yes, if the judgment was recorded so that it attaches to the real estate and the closing can pay or otherwise satisfy it to title’s standard. A personal judgment is not the same as a mortgage, but once it is of record against the land it can still have to be addressed before a clear deed. Amounts, priority, and whether a release is already sitting unrecorded are file-specific. Do not assume an old lawsuit is “expired” without title research. An Indiana attorney can explain judgment duration and revival; we do not.

Question 4

What is a mechanic's lien and can it stop my closing?

Accepted Answer

A mechanic’s lien is a statutory claim for labor or materials furnished to the property. In Indiana it is governed as part of the mechanic’s lien chapter in Title 32 (IC 32-28-3). If a contractor or supplier recorded a timely claim, title will typically require a release, payoff, or another agreed resolution before insuring. A disputed invoice can delay closing even when you believe the work was already paid. Bring contracts, canceled checks, and any release you already have. This is not a promise every mechanic’s lien can be cleared on your timeline.

Question 5

If a lien is wrong or already paid, how does that get fixed?

Accepted Answer

With a recorded release, a payoff letter that matches the instrument, or another document title will accept - not with a verbal assurance that “that was taken care of years ago.” If the creditor recorded in error, they generally have to correct the record. If you paid and nobody recorded a satisfaction, the closer still needs paper. Last-minute surprises are why ordering title early matters. We cannot “delete” a recorded item from the courthouse.

Question 6

Will the title company tell me everything that is recorded against the house?

Accepted Answer

The title commitment is the working list of recorded items the closer found and the requirements to insure your sale. It is not a guarantee that nothing else exists in the world, and it is not a legal opinion about whether a claim is valid. You should read Schedule B requirements and exceptions, including mortgages, judgments, tax items, and easements. If you want your own copies of deeds and liens, the Marion County Recorder maintains recorded documents separately from the Treasurer’s tax desk.

Question 7

Can I sell if there is an IRS tax lien on the house?

Accepted Answer

Possibly, but a federal tax lien is a different creditor from Marion County property taxes. The Internal Revenue Service may need to be paid from proceeds, or it may need to discharge the parcel from the lien so the buyer can take clear title. IRS Publication 783 explains applications for a Certificate of Discharge of property from a federal tax lien. Timing is not the same as a local treasurer payoff. This is not tax advice. Coordinate with the title company, and if needed a tax professional or attorney, before you assume a closing date.

Question 8

What happens if a last-minute title issue appears the week of closing?

Accepted Answer

Closing can be delayed until the exception is cleared, escrowed in a way title will accept, or the parties amend the contract. A cash purchase removes the buyer’s lender, not the need for insurable title. Typical late discoveries include an unreleased mortgage, a missed judgment, an heir who must sign, or a payoff that expired. How any particular Indianapolis file is handled depends on the title company and the documents - not on a generic “we always close anyway” rule.

Type	Who usually holds it	How closings often treat it
Mortgage / deed of trust	Your loan servicer	Payoff letter; funds wired at closing; lender records a release.
Property tax	Marion County Treasurer	Delinquent and current amounts are typically collected on the settlement statement.
Judgment	A creditor with a recorded judgment	May attach to real estate you own. Payoff or release must match the recorded instrument.
Mechanic’s lien	A contractor or supplier	Indiana mechanic’s liens are a statutory claim for labor or materials. See IC 32-28-3. An unpaid or disputed lien can delay closing until it is released or escrowed.
Code / municipal	City or county enforcement	Unpaid fines or assessments can show up on a municipal lien search, not only on a mortgage payoff.
IRS / federal tax	Internal Revenue Service	A Certificate of Discharge (Publication 783) may be required to clear the parcel even when sale proceeds will be sent to the IRS.

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