Housing Tax Liens and How to Avoid Losing Your House to Tax Foreclosure
Written by: Unique Home Solutions
What is a tax lien and how does if affect your house?
A tax lien is a debt that is claimed against your assets (an example of an asset would be your house you own). When a tax lien is placed against your house, the home owner does not profit from any equity until the tax lien is paid off.
Types of Tax Liens:
- Property Tax Liens: which are liens placed on your house for unpaid property taxes.
- State Tax Liens: which are liens placed on your house for back taxes
- Federal Tax Liens: which are liens placed on your house as a result of unpaid incomes taxes to the IRS.
When dealing with property tax liens: the city or county can create a tax lien certificate that can be sold to a 3rd party investor. This 3rd party may be able to foreclose on your house due to non payment. Failure to pay off the tax liens can result in foreclosure.
It is important to understand how tax liens may affect you, and what you must do to avoid a tax lien foreclosure.
It is crucial to settle tax liens as soon as possible due to interest rates and penalties that accrue when the debt is unpaid. As the tax debt and interest continue to grow, it will start to chip away at any equity that you have on your house.
How can you tell if you have a tax lien against your house?
Tax liens can be found during a title search. Homeowners can either contact a local real estate agent or local real estate investor and work with either party to discover if they have a lien against there house.
Home owners have alternative options when it comes to tax liens. They can set up payment plans with the local tax authority, sell there house to real estate investors or work with a tax attorney to try to settle any outstanding taxes you owe.
Benefits of selling your house to real estate investors:
- Real Estate Investors Buy Homes As-Is and in any condition: it doesn’t matter the condition of the house, if it is occupied or vacant. We buy houses throughout California in any condition.
- You’ll Never Have to Relist: when dealing with realtors there is no guarantee that a realtor can sell your house before the listing agreement expires. If a realtor is not able to sell your house during this time, the homeowner is bears the consequences.
- Investors Pay in Cash: you never have to worry about financing contingencies as we pay with cash.
- No Commission Fees
- No Closing Costs
- Quick Closing Process: we can close within 30 days or sooner.
If you are looking to sell your house fast, please contact us. We buy houses throughout California. We pay cash for houses and can close on your timeline.
Areas We Buy Houses in:
For a full list of cities we buy houses in please visit our Service Area page.
Disclaimer: Information in this blog post is meant to be used as a helpful guide, not legal or professional tax advice. If you need legal help with a tax lien, please consult a skilled attorney or tax advisor in your area.