How Can I Sell My House With a Tax Lien On It?

Getting a tax lien placed on your property can be a stressful situation. At Pavel Buys Houses, our team offers expert advise to homeowners who currently have a lien against their property in Massachusetts to make it easier for you to sell your home. While the selling process can be complicated, it is absolutely possible. Our home buying process is further explained by clicking here.

What is a Tax Lien on a House?

When a property owner starts making late payments on their tax payments in Massachusetts, the county places a lien against that specific property in the Registry of Deeds. Basically, what this means is you will not be able to sell your property until this lien has been fully satisfied / paid in full. Having a lien on a house negatively impacts your chances of selling your house to a potential buyer. Once a property is delinquent, or has unpaid property taxes – the county will schedule an auction to pay off the property tax lien. Therefore, it is extremely important you address this issue as quickly as possible without prolonging it.

When You Stop Paying Taxes, There Are Serious Implications That Could Cause You to Lose Your Home

• Property tax liens are usually non-negotiable. You are responsible for paying the full amount on what is charged, and reduction of payments is not an option.
• This issue could continue getting bigger over time. The longer you avoid on paying taxes, this will eat into your home equity.
• In order to remove the lien, you will have to pay off the debt in full or come up with a deal with your creditor (if the option is available).
• Tax Liens will be attached to your home (by default) and not on your name
• The city of Massachusetts may decide to foreclose on your property to settle the debt
• Your mortgage lender also may pay the taxes and then bill them back to you which could add to your overall debts. If this happens, the lender has an option to foreclose on you if you don’t provide the reimbursement.
• A great resource you should check out is: Tax Liens / Massachusetts Law Updates. It offers more detail and resources regarding liens, foreclosure process, and auctions.

What Happens If I Refuse To Pay?

When delinquent property owners fail to pay their debts, the amount you owe will be attached to your property as a ‘tax lien’. Ultimately, this can result in a tax sale of your home (known as the ‘tax deed sale’) or the tax lien could be sold as well (‘tax lien certificate sale’).

Can I Sell My House With a Lien On It?

If you’re trying to sell your house with a lien, it can be quite complicated. Even though the lien “attaches” to the property and not necessarily to your name, it will create problems when trying to sell  your house.

If a property has a lien against it, it will show up when the title company performs a search, and as a result – the mortgage can be declined for that specific property.

Most buyers will not want to be responsible for paying off a seller’s liens, therefore this can seriously impact your ability to sell your house. With that said, there is still hope!

To answer your question, selling a house with a lien “IS” in fact possible. A reputable, BBB accredited company such as ourselves purchase properties by paying cash in as is condition no matter what your situation is. This means, no banks involved or mortgage companies to deal with and quick closings are possible.

Quite commonly, real estate investors purchase houses with liens and is a fairly easy process due to the fact that the transaction is handled in all cash.

I Need Help. What Should I Do?

If you are falling behind on taxes and are in serious danger having your property being taken away from you, we can help. We understand how to deal with all kinds of lien problems so if you’re looking to sell your house quickly, be sure to get in touch with us so we can discuss your options and find the best possible solution for you.

A lien doesn’t have to limit your opportunities to regain financial freedom. The quicker you make a decision to sell your property, the more money you will end up with in the end.

Get in touch with us today to discuss your options by filling out the form on this page or by calling 781-309-7085.