When you have a lien on your home from tax debt, your increasing penalties and interest are likely adding pressure to your situation. Because tax debts continue to climb as time passes, taking quick action will save whatever equity remains and remove the dark cloud that lingers over your head. Whatever you do, don’t try to hide the issue or list your home before you’ve devised a strategy to free yourself from your lienholders’ entanglement, as this could lead to further costly delays.
Selling your home may be the solution to resolving your problem; however, the process is already fraught with stress, and the presence of a lien or tax problems will complicate matters. Therefore, you must clear this debt to sell the property and do so in a specified order dependent upon the status of the lienholder, such as primary or secondary mortgages or tax liens that are always primary. In more complicated cases, it’s advisable to work with a professional tax advisor or attorney to assist you.
Once satisfied, whatever you do, ensure that you receive documentation that you paid off the debt with a recorded lien release, lien discharge, or satisfaction of mortgage. If you find that the lien is still on the house and have proof you’ve paid the taxes, you’ll need to file a request for a certificate of release before closing. Ready to learn more about how to tackle this situation? Read on as we discuss how to handle liens and tax problems when selling your house .
While sticking your head in the sand is not the best option, if you’re nearing the ten-year mark of living underneath the lien and the amount is low, the IRS may permit the debt to expire. However, take great caution with this approach as there is only a slight chance of your debt simply vanishing. So typically, instead, Uncle Sam files suit against the debtor for collection.
Pay It Off
Of course, if you should have the funds available, the simplest way to handle liens and tax problems when selling your house is to pay off the debt.
You could try negotiating to handle liens and tax problems when selling your house if there isn’t enough equity to cover the total debt. An attorney should be involved in this process.
Disputing the debt is another way to handle liens and tax problems when selling your house ; however, you must have a qualified tax advisor appointed to represent you if the debt is with the IRS.
While complicated, another way to handle liens and tax problems when selling your house is to look for a cash buyer to purchase the property, if circumstances allow this option legally, knowing that the buyer must pay the debt if they want to sell the home in the future.
Your best option is to sell for cash to a direct buyer from Rocket Homebuyers and work the payment from your proceeds into the closing. Then, talk to the experts at Rocket Homebuyers who can help. We’ll relieve you of the burden of liens and tax problems when selling your house with the quick, easy and transparent process at Rocket Homebuyers. Furthermore, the direct buyers at Rocket Homebuyers never charge commissions and offer guaranteed closings, working with you for the most convenient date, usually within a matter of days. In addition, you’ll have the numbers in your hand to compare our offer against the profits you’d realize with a traditional listing, so you can decide what the best option is for yourself. Call Rocket Homebuyers at (402) 413-0424.