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\n <\/div>\n \n Stressed About Selling a House With a Lien?<\/h3>\n
Sometimes the easiest way to sell a house with a lien is to get a cash offer from an investor who is familiar with the process of resolving the title issue and can walk you through it. Take the next step by providing some information through our Simple Sale platform and we’ll help show you some potential options.<\/p>\n \n
Editor\u2019s note: This article is meant for educational purposes and is not intended to be construed as financial, tax, or legal advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.<\/em><\/p>\n Whether you\u2019re dealing with unpaid child support, outstanding income taxes, or property taxes owed to your local county treasurer, it\u2019s time to face the music head on so that this tax lien doesn\u2019t hang over you any longer or further compound with penalties and interest.<\/p>\n Consult this guide where we\u2019ll start with the basics (what exactly is a tax lien?), lay out in plain terms how a tax lien impacts your ability to sell your home, and explain what your options are for moving forward \u2014 from satisfying the delinquent tax to disputing its legitimacy.<\/p>\n A tax lien is essentially a debt claim against your assets, your biggest one being your house. This means that you cannot sell your house and pocket any equity from the sale until that tax lien debt is satisfied.<\/p>\n There are three main types of tax liens:<\/p>\n In most cases, you\u2019ll be dealing with the government to resolve the tax lien, but sometimes private entities become involved, such as with a property tax lien.<\/p>\n Your city or county can create a tax lien certificate<\/a> that can be sold to outside investors. If you fail to pay off the lien, as well as the additional penalties and interest, that private investor can then foreclose on your home as a repayment of the debt.<\/p>\n The upside is that a private investor may be flexible and willing to compromise on the payment timeline or the amount owed. Government entities are less likely to be flexible, and both your state\u2019s department of revenue<\/a> and the IRS<\/a> are willing and able to foreclose on your home, too, if their tax liens aren\u2019t paid in full.<\/p>\n Just like any other debt owed, when you have unpaid taxes, the government is going to charge you interest and penalties<\/a> when you don\u2019t pay up on time. And sometimes, that failure-to-pay penalty can be as high as 100% of your tax debt \u2014 which can be the case with unpaid employment taxes<\/a>.<\/p>\nWhat is a tax lien on a home?<\/h2>\n
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Why is my tax lien higher than the taxes owed?<\/h2>\n