Dealing with a tax lien on property can feel overwhelming, especially when you’re aiming to sell. Tax liens occur when there’s unpaid tax debt, and they can create roadblocks in the selling process. This can leave property owners wondering what steps to take next.
This guide will walk you through how to handle a tax lien efficiently. We’ll discuss common challenges, six actionable tips for resolving liens, and why working with professional cash buyers might simplify everything for you. By the end, you’ll feel more confident about selling your property despite the lien.
How to Approach Selling a Property With a Tax Lien
If you’re looking to sell a property with a tax lien, it’s important to know where to start. The legal sale process can be tricky, but these six steps can help you move forward.
1. Verify the Lien Amount
Start by identifying the total tax debt attached to the property. Contact the IRS or your state tax authority to get an accurate balance, including interest and penalties. Knowing the exact amount will help you budget and determine the best strategy for resolving it.
2. Discuss Payment Options
If you can afford to pay the lien, clear it before listing the property. The IRS may offer installment agreements if paying in full isn’t possible. Partial payments can also show good faith and initiate the release of the lien quickly.
3. Seek a Certificate of Discharge
A Certificate of Discharge can allow for the property sale while you still owe taxes. This document ensures the lien is removed from your house and attached to other properties or assets you own. Consult with the IRS to explore this valuable option.
4. Consider Selling at a Discount
A tax lien makes it harder to attract traditional buyers. Offering the property “as-is” at a lower price might draw serious buyers, especially investors. While you may not get full market value, you can resolve the debt sooner and move on.
5. Work With a Real Estate Attorney
The selling process can get complicated when tax liens are involved. An experienced real estate attorney can guide you through the legal sale process, ensuring compliance at every stage and helping you avoid costly mistakes.
6. Explore Selling to a Cash Buyer
Cash buyers are an excellent option for speeding up the sale of a tax-liened property. They’re often experienced with unique situations like this, buying properties in as-is condition without requiring traditional financing.
Work With Joe Homebuyer Triad Group
Selling a property with a tax lien is easy with Joe Homebuyer Triad Group. We buy homes in any condition, including those with liens, offering fair cash offers and handling all the paperwork. We make the experience quick and seamless so you can move forward stress-free.