What Owing Taxes Means for Your Home
Did you know state and federal governments have the legal right to your property if you fail to pay the taxes you owe? When you owe taxes, a lien can be placed against you home for the amount due. As a result, this tax lien will attach to your home until it is fully satisfied, even if the property transfers ownership. For this reason, homes with a tax lien in place incredibly difficult to sell. A tax lien is a serious and scary financial situation for any homeowner.
Removing a Tax Lien from your Home
A tax lien is the last resort of the IRS or your local tax collector to collect back taxes from an individual. Unlike a foreclosure, there are fewer options available to homeowners with a tax lien:
Satisfy the Debt in Full: If you have equity in your home, one of the best options is to sell your home. The IRS or state tax collector will then take the owed debt out of proceeds at closing.
Apply for a Discharge: If you do not have enough home equity to settle your debt you can apply for a discharge. A discharge removes the lien from the property and allows it to transfer to the new owner clear of the lien.
Letting go of your property is one of the best ways to start fresh when you owe back taxes. Becuase of the complicated nature of selling a home with a tax lien your potential buyers are limited.
Selling your Home with a Tax Lien
Like any financial situation, time is of the essence when you are dealing with a tax lien. The longer you wait, the worse the situation gets. CNS Home Solutions buys properties in all conditions and situations fast. Don’t delay contact CNS Home Solutions today.