Can I Sell My House With a Tax Lien?

A tax lien is a legal claim against the value of a house by the government because of unpaid tax debt. For example, if you have a tax debt, the IRS will first try to collect it by calling you and mailing you notices. If that does not bring any results, they will place a tax lien on your property.

In general, a tax lien does not prevent you from selling your home, but it definitely makes the home-selling process more complicated. If you are thinking of selling a property that has a lien on it, here is a list of things you can do.

Pay Off Your Tax Debt

The best solution would be to pay off the debt you have. It is better to do it as soon as possible. If you do not have money for paying your debt off, consider the following options:

  • It is possible to negotiate the lien you have. If you cannot afford to pay it, you can negotiate the lien and discuss payments.
  • The buyer of your home can also take over the lien.

Remove the Lien

There are several methods to remove a lien. The first step is settling the matter with the lien holder. The settlement process depends on certain factors, including the type of lien, its value, and the relationship with the lien holder. In most cases, if you agree on a certain payment plan, the lien holder will remove a lien.

Negotiate the Lien

There might be situations when a lien is not supposed to be on a property. For example, you have already paid it off, or it is just an error. In this case, you should contact a qualified lawyer, who will be able to prove that the lien is a mistake. Yes, hiring a lawyer is not cheap, and you will probably have to pay a few thousands dollars, but this will help you save money in the future and sell your home without any trouble.

Sell Your Home and Use the Proceeds to Pay Off the Debt

Another option that you can consider is selling your home first and using the money you receive to pay off the debt. If you work with a realtor, they will help you include the tax lien into the agreement. As a result, you will be able to deduct your tax debt from the sale proceeds.

Consider Taking Out a Bond

If you do not have money to pay off your tax debt, you can consider another option — a bond. Taking out a bond is an expensive option, but the bond can be used as the security for the tax lien. As a result, you will be able to go ahead and sell your property.

Sell Your House Fast to a Cash Buyer

In general, selling a home with a tax lien is quite difficult. If you decide to sell your property the traditional way, you may find out that most real estate agents do not want to deal with tax liens as they consider it a serious problem. However, it does not mean that you cannot sell your home with a lien at all — there is an alternative way that many people do not know about. You can sell your home to a home investor or cash buyer for cash. The best thing about this option is that home investors purchase all types of properties under any circumstances, so a tax lien is not an issue for them at all. Moreover, they buy properties as is, meaning that you do not have to invest in upgrades and repairs.

If you own a property with a tax lien in Lubbock, TX, or any other nearby town, and you want to sell it as soon as possible, We Buy Houses Lubbock is ready to assist. We buy houses with tax liens, we do it fast, and we pay cash. You will be able to close on the deal within two weeks and receive your money immediately. If you have any questions, or you want to know how this process works, feel free to give us a call or visit our website.