Is it possible to sell your house fast while having unpaid property taxes? As a long-standing cash home buying company, Homerun Home Solutions knows a thing or two about this process. Learn more about it here.
What Are Property Back Taxes?
Can you sell a house with back taxes owed? Let’s talk about why back taxes happen first. Simply put, they’re overdue mandatory contributions that a homeowner hasn’t paid on their property. They accrue interest and penalties over time, making the total amount owed potentially much higher than the original bill.
The unpaid taxes create a lien on the property, which essentially means there’s a legal claim against the house until you settle the debt. While this can scare off a few buyers, especially those relying on traditional financing, it’s not a complete dealbreaker. Some people may find the potential in your property when offered the right price.
Selling a House With Back Taxes Owed
If you need to sell a house with delinquent property taxes, consider the following options.
Pay the Obligations Using Home Sale Proceeds
For efficiency and convenience, you can sell a property and allocate a portion of the funds received to directly pay off any outstanding tax obligations. A closing agent or title company can manage this process for you and guarantee a fully cleared lien. The house will also become more attractive to potential buyers once you assure them that the title will be cleared at closing.
Pay After Closing Through a Lien Release
If you can’t find any interested buyers because your home has a lien, you can request a “Certificate of Discharge” from the taxing agency. This certificate doesn’t extend the repayment indefinitely or forgive the debt, but it allows you to transfer or sell the house without a lien attached to it.
You’ll need to specify the property you plan to sell, provide documentation like the sales contract, and show how the proceeds will go toward a full or partial tax lien payoff. While this process may take more time, you’re likely to find more interested buyers by clearing the lien, as it removes legal complications.
Sell Through a Real Estate Agent
Agents often work with experienced buyers specifically looking for homes with unique financial circumstances. While some buyers might hesitate to take on a property tied to extra closing costs and liens, a real estate agent can help position your home properly in the market to attract serious offers.
Always remain up front about your situation. Make sure you share all necessary details concerning unpaid property tax debt.
Partner With a Home Buying Company
Can you sell a house with back taxes owed? If traditional agents have turned down your listing, consider working with a home buying company. At Homerun Home Solutions, we provide cash offers for all kinds of properties regardless of their physical condition or financial situation.
We understand challenges like back taxes can be stressful, so we simplify the process for a quick sale. Call (484) 246-4894 today or read more of our blog to learn how to sell a house with a lien on it.
