Can You Sell a House with Unpaid Property Taxes

When it comes to unpaid property taxes, many homeowners hope to break free from their back taxes by selling the home. Unfortunately, this solution to unpaid property taxes comes with some disadvantages. Keep reading to learn more about how delinquent property tax bills impact the sale of your home.

What constitutes a lien on your home? 

A property tax lien attaches to your property on January 1 of each and every year, even though it is not considered delinquent until January 31 of the following year. Other common types of liens against homes include back child support, unpaid or underpaid income tax bills, and of course, property tax liens.

How Does a Property Tax Lien Impact Home Sales?

If you have delinquent taxes owed to your county or a property tax lien on your home, the total owed will need to be paid from the proceeds of the sale of your home. Unfortunately, this isn’t always as cut-and-dried as it sounds. For instance, liens combined with the remaining amount of your mortgage are owed to pay off the price of the home (which would include closing costs). When this happens, you may still be responsible for paying the outstanding amount of the lien.

How Home Tax Solutions Helps

Walking away from your home is another option if you’re struggling to cover the cost of a property tax lien. Property taxes are attached to the home not the homeowner, so you can simply allow the property to be foreclosed by the state. This will, of course, negatively impact your credit, and it’s not the ideal solution. Before you allow this to happen, you should make every effort to avoid losing your home to foreclosure. If you need help breaking free from the cycle of home tax debt, an affordable property tax loan from the Home Tax Solutions team may be just what you need. We offer property tax loans that help homeowners fit the cost of their annual property taxes into their budgets and get away from the high fees and penalties associated with late property tax payments. If you’re ready to get started with the property tax loan process at Home Tax Solutions, simply fill out our online application. Once we receive the details from this simple form, a team member will be in touch to discuss your property tax loan options.