Can I Sell My House With a Tax Lien?

Can I Sell My House With a Tax LienSelling your home is a challenging task and stressful experience, even under normal circumstances. It can be even more challenging if there are any obstacles. A tax lien on the home, for example, can make a home sale especially difficult - but not impossible. The experts at Frank Buys Houses explain below. 

What Is a Tax Lien?

A tax lien is a claim that the government makes on a property if a homeowner is past due on their income taxes. In other words, it is a debt against a property for failure to pay taxes. A tax lien on a house may be a red flag for potential buyers because it adds complexity to the sale.  The length of a tax lien depends on the type of lien, and it is not always possible to clear the lien even if the home is foreclosed upon. That means the lien can still haunt future homebuyers.  

Pay Your Lien at Closing

The best and quickest way to resolve a lien is simply paying the debt so you can move forward with the home sale. If you do not have enough money to pay it right away, you can ask your real estate agent to negotiate wrapping the cost of the lien debt into the closing costs. However, this may cause a significant delay in the closing process.

Dispute a Tax Lien

If you do not have any debt with the IRS, but the previous homeowner did and never received a certificate to lift the tax lien, you can try disputing the lien. However, you should understand that dealing with the IRS is not always easy. If their records indicate that you owe them, they may continue to attempt to collect.  

Get Help From Experts

If you are trying to sell a house with a lien on it, consider finding a professional experienced in negotiating with creditors that place liens on properties. An expert can explain what to say to the IRS and how to negotiate the deal. The expert’s role is to help you eliminate some of the financial burdens and set up a long-term and reasonable payment plan. Moreover, the expert can also help convince the IRS that the amount received from the sale will cover the debt once your house is sold. 

Sell Your House to a Home Investor

Most buyers and real estate agents see a tax lien as a serious problem and do not want to deal with properties affected by a lien. However, there is an option to sell your property to a real estate investment company experienced in dealing with troubled properties. Frank Buys Houses is a real estate investment company that buys homes in Stockton, Tracy, Modesto, and other surrounding California cities. By selling your home with a tax lien to us, you will be able to pay off your debt with the sale proceeds and get out of the lien for good. You will also avoid investing in repairs, inspection fees, realtors fees, and other unnecessary home-selling expenses. We are ready to buy your property as-is, as soon as you are ready. We can buy properties in a matter of days. If you have any questions, do not hesitate to contact us and find out more. Call us at 209-650-3110 or through our online form.