How To Turn Liens Into Listings

Important Note: PropStream does not offer legal advice. Before contacting homeowners with liens on their properties, we recommend doing your own research and/or consulting with a legal professional.

Properties with liens are often viewed as complicated transactions, but for real estate agents, they can represent some of the most promising listing opportunities.

Many homeowners facing involuntary liens aren’t necessarily lacking equity; they’re simply short on the cash needed to resolve the debt. That’s where an experienced agent can make a real difference. By helping homeowners understand their options, agents can guide them through the process of leveraging their equity, paying off outstanding liens, and moving forward with a successful sale.

The result is a win-win: homeowners gain a path to financial relief and a fresh start, while agents have the opportunity to secure a listing, solve a complex problem, and earn a commission.

Types of Property Liens and Their Consequences

A property lien doesn’t automatically mean an owner wants to sell, but it’s a strong signal. So here are some of the most common liens you might encounter: 

• Tax liens: These are legal claims placed on a property by a government agency for unpaid tax debt. 
• Mechanic’s liens: These are legal claims placed on a property by contractors or suppliers for unpaid construction work or supplies.
• HOA liens: These are legal claims placed on a property by an HOA for unpaid dues. 

Any of these lien types could lead to foreclosure if left unresolved, which is why homeowners may be open to resolving the lien with a sale.

The “Secret Sauce” Lien Filtering Strategy

To find homeowners with liens on their property, you could scour public records (since lien information is public). However, there’s a better way.

With PropStream, you can search homes in your market and apply lien filters. This narrows your search results to only properties with current liens. You can also use PropStream’s pre-built Lien Lead List to identify local lien properties.

From there, you can stack additional filters to further narrow your search. 

For instance, narrowing your search to lien properties with owners who have a minimum equity level (say 30-40%) can be a smart move. It ensures they have enough equity to cover the lien, closing costs, and your commission if they list with you—a recipe for pinpointing ideal clients. You can also choose the type of lien you want to uncover (e.g., HOA, utility, or mechanic’s lien).

How to Contact Lien Prospects

Once you’ve compiled a list of potential lien prospects, it’s time to contact them. 

While you could send a letter to their home addresses or show up in person to make a pitch, there are more efficient ways to reach them.

For example, PropStream lets you skip trace for contact information, including phone numbers and email addresses.* From there, you can launch an email, postcard, or dialing campaign directly within the platform. 

This helps streamline your entire prospecting workflow by eliminating the need to switch between platforms. Plus, it makes it easier to track and follow up with leads at different stages in your sales funnel.

Example Cold Calling Script

Of course, it’s not enough to just connect with leads. You also need to convince them to work with you.

To do this, you’ll need to develop a robust cold calling script tailored to homeowners with liens and their unique challenges. Here’s a basic script to use as a starting point:

Opening:

“Hi, is this [Prospect Name]? Great, my name is [Your Name], I’m a real estate agent in [Area]. I’m not sure if this is on your radar, but I noticed there’s a lien recorded against your property on [Street Address]. I work with homeowners in similar situations and wanted to reach out. Do you have a few minutes?

If they stay on the line:

I completely understand that these situations can be stressful. What I’ve found is that many homeowners don’t realize how much equity they have built up, sometimes enough to clear the lien, cover closing costs, and still walk away with money in their pocket. I’d love to put together a free, no-obligation market analysis so you can see exactly where you stand. Would that be useful?

Common Objections:

[I’m not interested in selling.]

“Totally fair. I’m not here to pressure you. I just want to make sure you have the full picture of your options, especially before the lien escalates. Would it be okay if I sent you some information?

[I’m already handling it.]

“That’s great to hear. If your plan changes or you just want a second opinion on the numbers, I’m happy to help. Mind if I follow up in a few weeks?”

[I can’t afford to sell right now]

That’s actually one of the main reasons people reach out to me. In many cases, the equity in the home covers everything. You may not need any cash upfront at all. Is it worth a quick look, even just to know your options?

Close:

I’d love to schedule a quick 15-minute call or walk-through of the property. No commitment, just a conversation. Does [Day] at [Time] work?

(If they decline, ask to follow up by email or in 30 days. Always end on a warm note.)

Get Your First 50 Leads Today for Free

Ready to find motivated sellers in your market? 

Use PropStream’s Liens Lead List to instantly uncover homeowners with active tax, HOA, or mechanic’s liens in your target zip codes. Combine it with our 165+ advanced filtering options to find high-equity properties that are primed for a quick, clean sale.

Try PropStream for free for 7 Days and grab your 50 complimentary leads!

*PropStream engages an independent third-party to perform skip tracing.