At Sky Equities LLC, we understand that hard times fall on homeowners and force them into a bad situation. At Sky Equities LLC, we can help. We can provide you with a cash offer and close your house quickly, allowing you to get back to enjoying your life without having to worry about selling your home and put the stress of your delinquent taxes behind you.
We have the resources, knowledge, and expertise to assist homeowners who are trying to sell their house but owe back taxes. As a homeowner, you may have found yourself unable to pay property taxes on a given parcel of land or your house; which then result in taxes accruing (with interest) that you will have to pay to “clear the title” before you sell your home. If the amount you owe is significant enough, or the time frame is long enough, the government could place a lien against your property, or in a worst-case scenario seize your property.
Some of the reasons why a homeowner could fall behind on their tax payments can include:
- Missed payments
- Unexpected events
- Health issues
- Job loss
- Upside down/negative equity
In summary, if your property becomes seized, you as a homeowner can potentially be left without a home and no compensation. In situations like this, it’s a much better option to choose Sky Equities LLC, which can close quickly and clear your debt; instead of your property being seized by the government and sent to auction.
Here are some common FAQ’s that homeowners may have in regards to selling a house with owed back taxes and liens:
- What is a tax lien?
- Is the amount I owe added to the selling price?
- Does the lien need to be paid off before I try and sell my home?
- Is it realistic to try and sell my home when there are back taxes owed, or the payments are delinquent?
Q. What is a tax lien?
A. A “tax lien” is a claim the government makes against your property if you neglect to pay, or are delinquent on taxes you owe to the IRS. These can be income taxes, property taxes, or other debts you owe.
Furthermore, the lien only exists once the federal government analyzes your liability, which means the government is overlooking the records of your overdue balance, and then sends a Notice and Demand for payment that states how much you owe.
Q. Can I still sell a house with back taxes?
A. According to the IRS, you have to pay the delinquent amount before you can sell or refinance your house. From there, you may pay the lien in full or partial with the equity you have acquired in your property, or with sale proceeds you received on your closing.
Q. What if your house sells for less than the amount you owe on your lien?
A. The government has systems implemented to assist homeowners that are struggling. The IRS states you as a taxpayer can request the IRS to dismiss the amount of you owe on your lien, only to allow you to sell your home.
Q. How to sell your house when you owe back taxes?
A. If you have fallen behind on your back taxes, you still have the opportunity to sell your house before or after the government places a lien against your property and before it gets foreclosed. Once you find a buyer, the taxes must be paid and current before the closing sale. If the taxes aren’t paid, you’re still able to transfer the title. Since a homeowner can pay off delinquent taxes with the money they receive from the closing sale; this allows them to pass a clear title. Although it can be a condition within the sale, the seller must stipulate in the purchase contract who will be responsible for paying the delinquent taxes.
The Bottom Line
It is possible to sell your house when you owe delinquent taxes on your home. The worst decision you can make in this situation is deciding to do nothing, and let your house be taken away from you without any compensation. Sky Equities LLC, does everything it can to work with you to purchase your home and get your debt cleared.
The skilled and knowledgeable professionals at Sky Equities LLC are familiar with what goes into the process of purchasing a home with back taxes still owed on them. We ensure that you get the maximum amount possible for your property with our offer so that you can move on with your life. We take pride in simplifying the home selling process for you, even if you have delinquent taxes.