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Can I Sell My House With a Tax Lien?

Selling a home is always a challenging task, even under normal circumstances. Even if the seller’s market is perfect and there is a high demand for buying properties, it can be hard to sell your home. It is even tougher if there is a tax lien on it. If this is your case, you may think that selling a home with a lien is impossible. However, there are certain things you can do, and those are going to be described and discussed in this article.

Tax Lien: What Is It?

If you have not paid your taxes for a certain period of time and owe money to the IRS, they will put a tax lien on your assets. This is how the IRS tries to get back the amount you owe them. 

Selling a property with a lien on it is difficult for several reasons. First, there are not many experienced realtors who know how to deal with a home with a tax lien. Another reason is that buyers and lenders do not like tax liens, and it is hard to convince them to either sell or buy your home. Even if you can do it, there is a high risk that you will be in a serious financial crisis after that. 

However, it does not mean that it is impossible to sell a property with a lien. You can still do it, but you will need the help of an expert. Here is a list of methods of how to sell a home with a lien:

Pay Your Taxes

The best way to sell a house with a lien is to pay your taxes. If you do not have enough money to pay off your debt, you can contact the IRS and try to find a possible solution. 

File for Bankruptcy

Filing for bankruptcy (Chapter 13) can also be helpful. However, it is important to know that it does not clear your debt. However, you will have better negotiating power that may help you with the IRS. Most likely, they will be more sympathetic to you and your financial situation and will agree to create a special payment plan for you. 

Dispute the Tax Lien

If you believe that a lien was wrongly placed on your home, you can always try to dispute the claim against you and your property. The first thing you should do is bring the case to the creditor. In many cases, they will cooperate fully and agree to release the lien. If the creditor refuses to release the lien, you can take the creditor to court. If you win the case, your tax lien will most likely be released. 

Talk to an Expert

There are professionals and experts who know how to negotiate with those entities and creditors that place tax liens on properties. They will explain to you what you should say to the IRS and how you can convince them to set up a special payment plan for you. Their mission is to do their best to help you get rid of your financial burden. They are also able to convince the IRS that you will pay the debt off once your home is sold. 

Sell Your Property to a Cash Buyer

For most lenders and home buyers, a tax lien is a serious problem and red flag. For this reason, if you own a home with a lien on it, selling it the traditional way may be quite challenging. Fortunately, there is another method that many people do not know about: selling their property to a cash buyer or home investor. There are many home investment companies that are experienced in dealing with troubled properties, including homes with tax liens. 

One of these companies is We Buy Houses Cincinnati, a group of real estate investors who buy all types of properties in Cincinnati and other surrounding towns. We purchase homes in different conditions and as is, meaning that you do not need to perform any renovations or repairs. We also buy homes under any circumstances, even if there are tax liens on them. Therefore, if you own a property that you want to sell as soon as possible, feel free to contact us. We are always ready to assist you.