Can you sell a house with a tax lien? A tax lien can become applied to a house for a variety of reasons, not all of which might be your fault. For instance, you might not have known about your tax burden in time, or you might have gotten stuck with a particularly large tax bill. Here’s what you need to know about selling your house with a tax lien. If you’re ready to get a cash offer on your home, call We Buy Houses Colorado Springs.
What Does a Tax Lien Do?
When you owe tax debts, a tax lien is placed on your property. This tax lien makes it so that you can’t sell your house without paying off the tax debts too. So let’s say you own your house, and it’s worth $250,000. You have a $100,000 mortgage, and you owe $50,000 in taxes. When you sell your house, the money is going to go to the mortgage first, leaving $150,000. Then, it will go to the tax office, leaving $100,000. Finally, the remainder will go to you.
So a tax lien isn’t a terrible thing because it’s not like it eradicates the value of your property. But the issue is that you do need to pay off the tax debt. The tax lien isn’t going to mean that they stop trying to collect your debt. It just gives them permission to collect the debt from the sale of your house. So you’ll still be getting collection calls constantly, and you’ll still be in danger of having your bank accounts levied or your wages garnished.
Why Don’t You Sell Your House?
What stops people from selling their houses? After all, tax debt can be very threatening. As mentioned, you could have your bank accounts emptied by the IRS. You could have your wages garnished so you’re barely making any money.
But many people hesitate to sell their house because they’re concerned about the process. If the house needs major repairs, such as roof issues, then they may not have the money at hand to actually make those repairs. If the house is old or damaged or just ugly, it may be that no one wants to buy the property.
Thanks to cash buyers though, you don’t need to worry about any of that. Cash buyers specialize in purchasing old, ugly, and damaged houses that can then be renovated and sold to a new owner. A cash buyer will be able to purchase your house regardless of what condition it’s in because a cash buyer doesn’t need a mortgage. And you’ll be able to sell your house fast because a cash buyer can actually purchase a house as quickly as the title can be shifted.
Sell Your House Fast With a Cash Buyer
So here’s the situation. With a tax lien, you still need to pay the tax debt. And you have to pay it fast. When you have a tax debt, money can be garnished from your accounts or your paychecks. You could find yourself in a very vulnerable situation.
But that also means that you can’t sell your house without clearing that debt. So what do you do?
You sell your house fast.
When you sell your house to a cash buyer like us, you can pay off your tax debts and keep any money remaining. We buy houses as-is, in any condition, so you don’t need to worry about fixing up the property or making improvements. Even better, we buy houses fast, so you are able to pay your debts as quickly as possible. Contact us today at We Buy Houses Colorado Springs to get a quote for your property.