Paid in full at closing from sale proceeds. Standard on every sale. Multiple mortgages are paid in priority order (first, second, HELOC). If proceeds don't cover all mortgages, you have a short sale situation.
Paid at closing. Most title companies won't insure a sale without tax liens cleared. If delinquent taxes are large relative to equity, they may need to be negotiated with the taxing authority.
Filed by contractors who weren't paid for work. Must be resolved before or at closing — either paid, bonded over, or disputed with documentation. Prevent title insurance from being issued.
Attach to all real property you own in a jurisdiction. Must be paid at closing or negotiated with the judgment creditor for a release. Can sometimes be settled for less than the full amount.
Filed for unpaid HOA dues and assessments. Paid at closing. Relatively straightforward unless the amounts are large.
If total liens and mortgages exceed what the property will sell for, you're underwater. Short sale (with lender approval) or negotiated settlement with lien holders are the paths forward. A real estate attorney is essential in these situations.
Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He has been investing in real estate for 20+ years.