How to Sell a House Fast Despite Tax Liens?
It may seem an impossible task to sell a house while facing down tax liens. However, this does not have to be the case. With the team at Lucky Home Buyers, real estate consultants in Towson, Maryland, we will look at how to sell a house fast despite tax liens.
What is a Tax Lien?
A tax lien is a claim of debt made by the IRS, locking up assets that you currently own, including your home, personal possessions, and financial assets. If you have a tax lien on your property until the debt is paid in full, you can’t get any money from selling the house.
Most of the time, the homeowner will have to only deal with the government, but in some cases, a private agency may be involved, especially when it is a property tax lien.
The 4 Main Kinds of Tax Lien
- IRS Tax Liens: These liens will be put on your home if there are any unpaid income taxes owed to the IRS.
- Property Tax Liens: These types of liens are placed on your home if you owe property taxes to the county or city.
- State Tax Liens: If you are still due to pay back taxes to your state’s Department of Revenue, you will get these liens placed on your property.
- Homeowners Association Liens: If you have a local HOA and you owe them monthly or yearly payments, most HOAs will have and exercise the power to place a lien on your property.
Tax Lien Certificates
Municipal tax assessor offices typically issue tax lien certificates because they want to get delinquent taxes owed to them from homeowners who have a tax lien against their property.
A tax lien certificate can in some cases work in the homeowner’s favor because it gives them more time to pay the taxes they owe. They usually have 1 to 3 years to do so and if the debt is not paid by that time, the investor can foreclose on their property.
Selling a House as is with a Tax Lien
When you are selling a house as is with a tax lien on it, you aren’t transferring the property with the tax lien to the buyer. The tax lien is your responsibility to deal with. You will have to pay the debt that you owe before you can sell your house as is.
Paying at Closing
As the home seller, you can satisfy the IRS by paying their debt off in full before trying to sell a house fast. Before any selling, though, they would still need to get a lien release from the IRS.
Applying for a Certificate of Discharge
All federal tax liens need to be satisfied via payment. However, sometimes the IRS will grant a certificate of discharge. This certificate detaches the federal lien from the property, allowing you to sell your house as is.
If the IRS has reason to believe that your property is due for sale and could settle your debt with them, they can, sometimes, grant a certificate of discharge.
If the IRS is unsure of unsatisfied, they can seize your personal property and other assets to pay the amount that is still due.
About Lucky Home Buyers
At Lucky Home Buyers, we have over 25 years of experience providing win-win solutions to help homeowners get out of their sticky situations. Issues such as foreclosure, owning a burdensome property, probate, or anything else, we focus on providing you with a compassionate solution to your situation so you can continue to do the things you love.