What Happens When You Have a Tax Lien On Your Home?

A tax lien is a legal claim that is placed on a property when the owner fails to pay their taxes. If you have a tax lien on your home, it means that the government has a legal right to your property as security for the unpaid taxes.

When you have a tax lien on your home, you will typically receive a notice from the government informing you of the lien and giving you the opportunity to pay the taxes that you owe. If you do not pay the taxes, the government may take steps to foreclose on the property and sell it in order to recover the unpaid taxes.

If you are unable to pay the taxes, you may be able to work out a payment plan with the government or negotiate a settlement. It is important to address the tax lien as soon as possible, as ignoring it can lead to more serious consequences, such as the loss of your home.

Property taxes

People fail to pay their property taxes for a wide variety of reasons. They may find that the payment is too much, they have other expenses, or be behind on payments from previous years. In some states, there is a timeframe before the foreclosure process starts. In Utah, four consecutive years of unpaid property taxes triggers a foreclosure. In Texas, there is not a set timeframe. The foreclosure process can start at any time and your home can be taken away from you within sixty days. Selling your home with a fast cash offer can help you clear your tax lien and walk away from your home, leaving your credit record clean.

Income taxes

A lien can also be placed on your home if you fall behind on your income taxes. Typically, you will get a lien from the IRS if you owe more than $5,000, and they don’t think you will be able to make a payment within ten years. A foreclosure on your property can be risky, as you could realize a loss on the sale of your home. A fast cash offer can be the best way to clear an income tax lien on your home.

Why consider a fast cash offer from Houston Capital Home Buyers?

A fast cash offer on your home can help you clear any outstanding tax debt. With a fast cash offer, you can potentially even walk away with a gain on your sale after you pay back your outstanding tax debt. Most often, you may need to react to your tax lien quickly if you live in an area of Texas where property tax foreclosure happens fast. Houston Capital Home Buyers will buy your home as is, making you an offer within 24 hours and selling your home in as little as seven days.