Selling a home with a tax lien can feel overwhelming, but it’s far from impossible when you understand how the process works and plan strategically. A tax lien simply means a taxing authority has a legal claim on your property due to unpaid taxes, and that claim must be addressed before ownership can transfer. The first step is to know exactly what you owe, including penalties and interest, as the balance can grow over time and directly affect your net proceeds. From there, homeowners typically have several viable paths: paying off the lien before listing, satisfying it using sale proceeds at closing, or negotiating with the taxing authority to reduce the amount owed, especially in cases of financial hardship or limited equity. Choosing the right buyer is critical, as experienced cash buyers often specialize in properties with liens and can offer faster, as-is sales while coordinating lien releases. The closing itself looks different than a traditional sale, requiring precise payoff instructions, title verification, and professionals who understand lien settlements. With the right approach, selling your home can clear the debt, stop additional penalties from accruing, and allow you to move forward with a clean slate and renewed financial freedom.
source: https://www.expresshomebuyers.com/blog/the-4-step-guide-to-selling-your-home-with-tax-liens/
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