Can I Sell My House with a Tax Lien?
Can I sell my house with a tax lien? According to the IRS, you MUST pay the delinquent taxes BEFORE you can sell (or refinance) your home. You must satisfy the debt of any back taxes or delinquent payments before closing. If you do not repay before closing, then the delinquent amount will be deducted from your 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 Harmony Property Solutions, LLC, to act quickly.
We will send you FREE information about How to Sell Your House Fast.
Harmony Property Solutions, LLC, is here to help homeowners out of any distressed situation. As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer you the simple truth about your home and how we pay cash for houses Cedar Rapids.
Harmony Property Solutions, LLC, is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but we CAN help, and we can do it quickly!
Give us a call today at 319-343-6773 to let us know how we can help you.
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