Can I Sell My House With a Tax Lien?
Selling your home is a stressful and challenging experience, even under normal circumstances. If there are any additional obstacles and challenges, it can get even more complicated. A tax lien is one of these obstacles. Many homeowners mistakenly believe that having a tax lien on your home makes selling the home impossible, but that’s not the case. There are ways to do it and we’ll show you how.
What Is a Tax Lien?
A tax lien is the government’s legal claim against your property if you have failed to pay a tax debt. Usually, a tax lien on a home is a red flag for potential buyers and makes the home-sale process quite complicated. Some tax liens last longer than others, but this depends on what type of lien it is. In some cases, it is not even possible to clear the lien after a completed foreclosure. It can be difficult to handle a tax lien, but there are still ways to do it, meaning that it is still possible to sell your property with a lien on it. Here is what you can do:
Pay Your Tax Debt at Closing
The most effective and quickest way to resolve this tax lien problem is to pay off your tax debt. If you do not have enough finances to do it, you can discuss this with your real estate agent, who may wrap the cost of paying off the tax debt into the closing costs. Be aware, though, that this can cause a delay in the home sale process.
Dispute the Debt
There might be a situation when you do not have a tax lien on the home, but the previous homeowner did. If this is the case, you can try to dispute the debt with the IRS. However, it is important to understand that dealing with the IRS is never easy. If they think you owe them money, they will persist in collecting.
Talk to a Professional
If you are trying to sell a property with a lien on it, and you need some help to make sure you are doing everything right, getting help from a professional is a good idea. There are experts who specialize in negotiating liens on properties. An expert will explain to you how to deal with the IRS and help you get rid of the financial burden. They can also help you set up a reasonable and long-term payment plan. Professionals may be also able to convince the IRS that once your property is sold, a certain amount of money received from the deal will be used for paying off the debt.
Sell Your Home to a Cash Buyer
As has been mentioned above, a tax lien is often considered a red flag for home buyers and realtors. Therefore, many of them do not want to deal with it. For this reason, it may be difficult if not impossible to sell your home the traditional way before your tax debt is paid off. However, there is another method that you may not know about: selling your property to a cash buyer. Cash buyers, also known as home investors, are used to dealing with troubled properties, and your tax lien will not scare them away. They will buy your home as-is and as soon as you are ready. We Buy Houses Oklahoma City is your local home investor. If you need to sell a property with a tax lien in the state of Oklahoma, our company is ready to help you. We purchase all types of homes in different locations across the state, and a tax lien is not a problem for us. All you need to do is to visit our website and fill out the form or give us a call at 405-757-2507. We are ready to answer all your questions and make sure that your home-sale process goes as smoothly as possible.