Many homeowners have tax debt that is a source of tremendous stress, especially when it is compounded with penalty fees and interest. Having tax debt also means having a lien on your home, which may not be a problem until you decide to sell your property. Selling a home with a tax lien may be challenging, but it is still possible.
What Is a Tax Lien?
It is a legal claim placed by a government or tax body on an individual’s property and personal belongings for unpaid taxes. It is a form of recourse used to obtain unpaid taxes.
Types of Tax Liens
Here are the three most common types of liens:
- Property tax lien. This is a type of lien placed on a person’s property by a local government for unpaid property taxes.
- Federal tax liens. This lien is placed if a person has not paid income taxes and owes money to the Internal Revenue Service (IRS).
- Judgment liens. These liens are placed by the court for unfulfilled obligations. They provide the court with the right to take possession of the property.
Federal tax liens are released by the IRS 30 days after they are fully paid off. If not, they will expire after 10 days. In some cases, it can climb up to 20 years, but that depends on the jurisdiction. The IRS also has the right to refile a lien. Creditors can renew judgment liens as well.
It is recommended to pay off your tax debt as soon as possible because of penalties. The longer you do not pay your liens, the more interest will be accrued.
How to Sell a Home With a Tax Lien on It
If you own a property with a lien, and you want to sell it, there are certain things you can do to navigate around the lien.
Receive a Certificate of Discharge
In order to release your property from a lien, you can ask the IRS to provide you with a certificate of discharge. It will allow you to sell your home and use the equity that you received from the home sale to pay off your tax debt. You will need to present your certificate of discharge before closing the sale. Your closing attorney will transfer money to a creditor, and the lien will be officially resolved.
Dispute Your Lien
Your lien may have been filed in error. If this is your case, you can dispute it. There are tax experts who are able to handle these situations strategically and help you. If your situation needs legal assistance, you can also consult a tax attorney, who will be able to request a tax lien appeal officially.
Sell Your Home to a Cash Buyer As Is
If you have a property with a lien, it is better to sell your house fast. There are plenty of cash buyers and home investors who are ready to purchase your home as-is. They will not require you to make any renovations or repairs. By selling your property for cash as-is, you will receive your money quickly and free yourself of the tax debt in a timely manner.
We Buy Houses Tulsa – We Buy Houses With Tax Liens
If your property with a tax lien is located in Tulsa, OK, or any other surrounding area, We Buy Houses Tulsa is ready to help. We buy houses fast and without the hassle of a realtor, and are able to handle complicated situations including tax liens. Our mission is to make the stressful home-selling process an enjoyable and positive experience regardless of the situation.
Therefore, if you want to sell your house fast, and you want to get rid of your tax debt at the same time, feel free to contact We Buy Houses Tulsa. We are always here for you and are ready to answer your questions.