Can I Sell My House With a Tax Lien?
Selling a home is a challenging task. There are so many factors to take into consideration. It is not an easy process even under normal circumstances, and if there are any other challenges and obstacles, it becomes even more complicated. One of these obstacles is a tax lien. Many homeowners have tax liens on their properties, and they think the home cannot sell until the tax lien is dealt with. But that’s not the case. There are still ways to sell a house with a tax lien.
What Is a Tax Lien?
A tax lien is a legal claim from a state, federal, or local government that is placed on the property and assets of an individual if they fail to pay their taxes. Tax liens appear in the public record, and most home buyers shy away from properties with liens because they are hard to remove. In some cases, even foreclosure cannot clear the lien. It is hard to handle a tax lien, but there are still methods you can use to sell your home.
Pay Off the Lien at Closing
One of the best and most effective ways to resolve a lien is to pay it off. If you do not have the finances to do this, you can always talk to your real estate agent and discuss the possibility of wrapping the costs of the lien into the closing costs. However, it is important to understand that the closing process may be delayed because of this.
Dispute the Lien
There is also the possibility of disputing the lien if you know for sure that you do not have any debt with the IRS. It is possible that the previous owner of the property never received a certificate to lift the lien. You should understand, though, that dealing with the IRS is not at all easy. If they think you owe them money, they will not leave you alone. The fact that they communicate only via mail, phone, or in-person makes the process of dealing with them even more complicated.
Talk to Experts
If your property has a lien on it, but you do not know what to do, getting professional help may be a smart decision. You should consult with an expert who will negotiate with creditors and entities that place liens on properties. A tax lien expert will explain to you what exactly you should say to the IRS. The mission of this expert is to help you, as their client, to get rid of this financial burden and set up a seasonal payment plan. Tax lien experts can also help convince the IRS that you will pay them once the house is sold.
Sell Your Home to a Cash Buyer
As mentioned above, for most real estate agents and homebuyers, a tax lien is a red flag and a serious problem. Therefore, they do not want to deal with the properties that have liens on them. Selling the home with a lien the traditional way may be a challenging task. Fortunately, there is another method: selling your property to a cash buyer or real estate investment company. They are ready to purchase a property immediately and as-is, meaning that you are not expected to do any renovations or cleaning.
We Buy Austin Houses is one real estate investment company that helps people sell their homes. Our team of experienced professionals is ready to help you and make the home-selling process easy, enjoyable, and straightforward. We buy all types of homes, even properties with liens, because we know how to deal with this issue. All you need to do is visit our website, fill out the form, and wait for our call. Or call us now at 512-598-9341.