Falling behind on taxes and even a tax lien can result from financial hardship and unexpected expenses. Selling a property with a tax lien can sometimes be the best option.
Can I sell a house with a tax lien? How can I ensure a successful sale? Don’t worry about tax liens. You can still sell your property without being stressed out. Let’s break it down step by step and make it easy to understand. Tando Agents can even rush in to save the day and make this whole thing stress-free.
What is a Tax Lien?
The government will file a tax lien on your real estate if you owe taxes for an extended period. A tax lien is a legal claim placed on a property by the government due to unpaid taxes. Whenever property owners fail to pay their taxes, the government secures its ability to collect through this lien. The state of Texas does not sell tax lien certificates but instead conducts tax sales that can lead to foreclosures of real property.
How Do Tax Liens Work in Texas?
When property taxes go unpaid for a certain period, usually about a year, the process begins. Your property can be seized after that point by the local tax authority. Tax liens remain attached to homes until they are paid off.
When you sell your house in Texas with a tax lien, potential buyers will see the lien during their title search. Having a lien may scare them away or cause them to lower their offers.
Can You Sell a House with a Tax Lien in Texas?
Can you sell a house with a lien in Texas? Yes, If you have a lien on a property, you can sell it anywhere. The sale proceeds must be sufficient to cover your debt. A buyer willing to cover the remaining lien costs is necessary if the sale does not cover the debt.
Homeowners should seek legal advice or real estate professionals to navigate this process effectively when selling properties with existing liens. Experts can assist with managing liens, negotiating payment terms, and exploring options for removing liens. You need enough equity in your cash offer to cover closing costs and moving fees if you don’t have much savings. Mortgages are usually covered by home equity.
How to Find Out if Your House Has a Tax Lien?
Tax liens might not be apparent to you, especially if you’ve inherited a home. An easy way to discover a tax lien is by doing a title search. Public records are examined to determine whether a property is legally owned and to identify any liens or claims against it. You can run a title search and identify potential liens with the help of a local title company.
The Impact of a Tax Lien:
The presence of a tax lien can seriously hinder your ability to sell your home. Property ownership can be transferred to another party after a tax lien is resolved.
Additional costs and complications associated with clearing the lien may deter potential buyers. Sale proceeds that cover the lien make the process easier, but if you still owe money, it makes the process much more complicated. Unpaid taxes are subject to interest and penalties over time, so an unpaid lien can quickly deplete a property sale’s proceeds.
How to Sell a Property in Lien in Texas?
Selling a liened property in Texas is very similar to selling any other home. Your first step should be to hire a real estate agent with experience and a good photographer after staging your home. Real estate agents will help you list your home.
You will need a real estate attorney to complete all the paperwork following all regulations once you find a buyer and get an offer for your home. Liens on a property in Texas, whether they are IRS liens, HOA liens, or mortgage liens, can complicate the sale.
To sell a property, you have three main options:
- Repaying debt with house sale proceeds
- Selling the house for cash
- As-is sale with a lien attached
Repayment by house sale:
If your home equity is large enough, you should be able to cover the lien debt cost from the profit left over. Thus, you can repay your debt using the home sale price. A clear title on the property is required if you intend to use the house sale to repay the lien debt. The new owner must pay off all liens and fees before transferring ownership.
The debt can either be paid off in full or negotiated with the lender so that the amount owed is reduced. The lender must provide a lien release.
Sell house to cash home buyer:
In addition, you can sell your home to cash home buyers in Tyler, Houston, Austin, or elsewhere in Texas. It is possible for a cash home buyer to take on the property with the lien attached. Alternatively, you can ensure the cash offer will cover the debt upon sale.
With a cash buyer, you can finish the sale quickly and even avoid closing costs, repairs, and a realtor. Thus, you will not have to pay an agent’s commission.
Selling house As-Is with a lien attached:
You can also sell the home as-is with the lien attached. Following the sale, the buyer would have to cover the lien debt. You can save money and time by selling as-is rather than repairing and renovating. To attract more buyers, it may be a good idea to tidy up the place and stage the furniture.
How Selling Your House for Cash Can Help You?
Tax liens are stressful enough without worrying about shady buyers and confusing contracts. What if you didn’t have to wait for buyers, fix up your house, or worry about liens on property in Texas? The lien is paid off, and you walk away stress-free. A cash sale is one of the fastest and easiest ways to wipe out a tax lien.
Tando Advisors makes the process easy and transparent. Need to sell your house fast? Tando Advisors specializes in buying houses as-is, even if they have liens on them. You’ll get a fair cash offer, a quick closing, and hassle-free paperwork.
What Happens After You Sell Your House?
Tax liens are paid off once you sell your house. The remaining cash goes straight into your pocket. If you need a break, move to a smaller home, or just take a much-needed break, you can start fresh. What’s the best part? You are no longer burdened by liens or stressed out by finances. It’s like restarting your life.
Final Thoughts:
When you have the right resources and support, you can avoid a tax lien on property in TExas from turning into foreclosure. Protecting your home and your financial future requires understanding your rights, taking proactive steps, and being strategic.
Tando Advisors can help homeowners feel more at ease. An experienced tax professional can handle calculations accurately and explore available exemptions or payment solutions on your behalf. Make informed choices and seek support as necessary to reclaim ownership.
