Are you burdened with property tax or lien problems in Houston? You are not sure what your options are and you don’t want to lose your home to Uncle Sam? Learn how to sell your house with tax or lien problems in our latest post.
As a homeowner in Houston, it can feel impossible to sell your house with liens or tax problems.
Some homeowners owe thousands of dollars in back taxes and the county is coming for your house to pay their bills.
If you don’t have the cash to pay off the debt, you could be stuck with the property for much longer than you would like, driving you even further into debt.
In this blog post we will discuss whats a tax lien, and some options on how to help you break through and sell your property.
What is a Lien?
Let’s first discuss what a tax lien is. It’s a legal claim against your property when you neglect or fail to pay a tax debt.
The lien protects the government’s interest in all your property, including real estate, personal property, and financial assets
A property lien must be filed and approved by a county records office or state agency. It is then delivered to the property holder with specific terms notifying them that action has been taken to repossess a piece of property.
In the case of real estate, your lender may place a lien on the house if you are not paying your mortgage in a timely manner.
Homeowners can also be hit with a mechanic’s lien or a judgment lien when work is performed on the property without any payment ever being received.
If the homeowner isn’t able to pay off the lien, the issuing party has the ability to foreclose on the property.
By placing a lien on the property, the creditor stops your ability to sell the house until the debt has been repaid in full.
Liens are usually attached to real estate, but they can be attached to personal property as well.
Wow, that was a mouth full but a lot of useful information you needed to know.
Types of liens in Real Estate
Tax liens: This is a type of lien that is placed on your property. If you fail to pay your taxes, the federal, local or other government entities can place a lien on your property for the unpaid taxes.
These tax liens include income taxes, business taxes, and property taxes. These liens typically won’t cause your home to be foreclosed on.
Mortgage liens: This type of lien will definitely get you in trouble. A mortgage lien gives your lender the right to take your property if you fail to pay your debt.
Mechanics liens: This is a lien against your home or property, typically used by a contractor or supplier for work completed that they were not compensated for. The lien is used as a tool to seek payment for remodeling, improvement is done to a home, etc.
Judgment liens: These types of liens are less common than the ones above. Judgment liens are a direct result of a lawsuit against a person or business. The court gives the creditor the right to take possession of a debtor’s property if they fail to fulfill his or her contractual obligations.
Sell Your Home to Real Estate Investors
With a direct sale of your house to Sell Your Homes Houston, you will be able to leave the liens and tax problems behind.
You won’t have to find the money to pay off liens or to pay off your back taxes.
We will handle all of the debts, while quickly and efficiently buying your property for an excellent price.
All of the hassles and headaches could be over in only a matter of days, allowing you to sell your house with liens or tax problems fast in Houston!
Create A Repayment Plan
While paying off everything you owe all in one shot can feel overwhelming, many creditors will work with you to create a payment plan to help you pay off your debt.
Before you feel too defeated, reach out to the creditor to try to work something out. Ultimately, their goal is simply to collect what they are owed.
Making an effort will help your creditors more forgiving and willing to work with you.
Once the liens are lifted from the property, you will be able to sell your house, but this can take a considerable amount of time depending on how much debt you are in.
When working to pay off the debt, it could mean that you end up holding onto your house for longer than you wanted to.
Once your debt is repaid, you will be able to move ahead with the sale of the property, but you may miss out on some great opportunities while you wait.
Dispute The Lien
If a lien has been issued against your property that you disagree with, not all hope is lost.
You have the ability to dispute the lien so long as you have a strong rebuttal.
You’ll need to have supporting documentation and a valid case against the creditor.
To strengthen your case, you’ll want to start fighting the lien as soon as it is placed against your home, if not before.
Ultimately, you want to do all you can to make sure a lien isn’t placed on your property in the first place.
Typically, there are a number of requirements a creditor must meet before issuing a lien, so keep in mind, they have already done their homework on what they are rightfully owed.
If you are disputing a lien based on poor performance by your contractor, keep detailed records of what you were promised, what you received, and all of the money you spent to fix the errors.
Be sure to include inspection records, dates, and photos with your other evidence.
Related: 5 Tips for Selling an Inherited House in Houston
Consequences of not Paying Taxes or Liens
Ultimately, if certain liens go unresolved you run the risk of losing your home. When liens go unpaid, the creditor has the ability to foreclose, assuming ownership of the property themselves.
If you have a lien on your house or if you have problems paying the property taxes, you will want to take action right away.
Reach out to your creditors to resolve the situation.