Can I Sell My House With a Tax Lien?
You have a house with a tax lien on it. Unfortunately, you might not have much more information than that. Whenever you’re late on taxes, you can get a tax lien on your property. And until those taxes are paid, the tax lien will remain. But what if you have to sell your house to make up for the taxes?
What Is a Tax Lien?
First, what is a tax lien? When you owe money in taxes, the tax department wants to make sure that you’ll eventually pay. They get a lien on your property that says that you can’t sell that property without them getting paid off. So they want money from your property because they haven’t been able to get any money from you.
Can You Sell Your House With a Tax Lien?
A tax lien doesn’t mean you can’t sell your house. What it means is that the lien needs to be paid off. So if you need to sell your house fast, you can do it. But the money is going to go to paying off the tax lien before you get any profits.
So say you own a $200,000 house. You have a $60,000 mortgage, and you have a $10,000 tax lien.
If you sell your house, $60,000 goes to the lender, and $10,000 goes to the taxes. And then you get the $130,000 that’s left.
You can sell your house with a tax lien, but (importantly) you can’t get away with not paying that tax lien. And the easiest way to resolve that tax lien is often to sell the property so it can be paid off.
Should You Sell Your House?
A tax lien isn’t a great thing to have. Though the lien might be on the house, that doesn’t mean that collections are going to cease. They’re going to keep trying to collect on you. The tax lien is just there, essentially, as an anchor.
But selling your house can actually be the perfect way to resolve a tax lien. If you sell your house fast, you can pay off the tax lien and your other debts. You can then start rebuilding your credit history and your financial foundation.
If you can’t afford your house with your current debts, it’s usually a good time to sell. Otherwise, your debt is going to continue growing rather than shrinking, and you might find yourself in a difficult situation later.
You can go through your current budget and your current finances to see what you really need to do to afford to keep your house. But it may be time to sell your house, downsize, and pay off your debts.
How Can You Sell Your House Fast?
Sometimes people don’t want to sell their house because it’s an overwhelming process. They have to clean it, make repairs, put it on the market, and wait. During that time, their debts are all accruing interest. It’s exhausting.
But at Terra Home Solutions, we buy houses without requiring any repairs. You don’t need to list your house on the market. And you can get an offer immediately. We’ll give you an offer that’s tailored to the value of your house now, so you can sell your house fast and get rid of any debts.
Once we pay you for your house, you’ll be able to pay off your tax lien or other debts and move on from the entire situation. And we buy houses in any condition — even those that may need significant work and repairs. Are you ready to sell your house and get out from under that tax lien? Contact Terra Home Solutions today to find out more.