Can I Sell My House with a Tax Lien?

Can I Sell My House with a Tax Lien?


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Can I Sell My House with a Tax Lien?Can I sell my house with a tax lien? I tremble at the name IRS, but according to them, I MUST pay the delinquent taxes BEFORE I can sell (or refinance) my home. According to that government agency, which will go nameless, I  must satisfy the debt of any back taxes or delinquent payments before closing. If I do not repay before closing, then the delinquent amount will be deducted from my proceeds as the seller – it does NOT raise the selling price of the house.

What is a Tax Lien?

A “tax lien” is a claim the government makes against your property if you neglect to pay, or are delinquent on taxes you owe to the IRS. These can be income taxes, property taxes, or other dues you owe.

The lien only exists after the federal government assesses your liability (a.k.a. records your overdue balance), and then sends you a Notice and Demand for Payment (a.k.a. the bill that tells you how much you owe.

What if your apartment or house sells for an amount less than the amount of your tax lien?

Thanks to the economic downturn, the government has systems in place to help homeowners who are struggling. The IRS says you as the taxpayer can request them to discharge the amount you owe – only to allow the sale to be completed. This is also true in the case of refinancing or restructuring your mortgage. They also offer Direct Debit Installment Agreement programs (DDIA) that will make it easier for homeowners to get their lien withdrawals granted upon payment.

How To Sell A House With A Property Tax Lien

Let’s say you are selling an apartment for $100,000, and you still need to pay $80,000 for your current mortgage.

  • There is a tax lien for $5,000.
  • At the closing of the sale, both the current mortgage and the property tax lien would be paid from the $100,000 selling price.
  • This means you are left with $15,000 as your net profit.

Can I Sell My House with a Tax Lien?

Yes! If you’re looking to sell your property quickly, knowledge is power. The more you know about your options,the less stress and worry, especially if you use Coal to Cash Homebuyers, Inc. to act quickly.

Download FREE information on How to sell your house fast

CashFlow Chick and Coal to Cash Homebuyers, Inc. are owned by Paige Panzarello. She has been in Real Estate as a Landlord, Builder, and Investor since 1996.

We buy as-is. An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property as-is.

When we buy houses fast, there are no fees!  We don’t charge you a real estate commission, and we may take care of any other nagging financial problems such as back taxes, code violations, or past due water and sewer bills.

Paige also helps to educate people on the importance of Passive Income, deal evaluation, money management, how to wisely interact with money, and what the heck does a profit and loss and balance sheet actually look like?

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