How to Sell a House (in Lima Ohio, Columbus Ohio or nearby cities) With Back Taxes on the Property?
Pay the Taxes Owed Using the Sale Proceeds of the Property
A common way to sell a house with property taxes owed is to pay back the taxes using the proceeds of the home sale. At the time of closing, the sale of the home will go toward the mortgage and then the lien. A closing attorney will supervise the transfer of funds to ensure that the delinquent taxes are paid in full. Any remaining balance, after closing costs and Realtors’ fees will go to the seller.
If you sell your property, a large portion of that will go towards the mortgage balance. If you have a tax lien on your home, your closing attorney can arrange to have that amount taken out of your sale proceeds at closing. This will leave you with the difference (before closing costs and fees).
If the proceeds of your sale do not cover the mortgage and owed taxes, you’ll be responsible for bringing the rest of the owed balance to closing to satisfy the lien — or the sale cannot close. If you aren’t sure that you can sell your home for a price to meet all financial obligations, you may want to seek another route before you sell a house with property taxes owed.
Acquire a Lien Release to Pay After Closing
In some situations, the taxing agency may grant a lien release called a “certificate of discharge”. This certificate does not forgive the debt or extend your repayment indefinitely. What it can do is allow the lien to be released from the title of the property and transferred to you. You must still repay the owed taxes, but you’ll be able to sell your house and pay back the debt after the sale.
The disadvantage of this method is that it can take time, extending the closing of the sale and increasing the chance the buyer walks away.
Most average home buyers will not be interested in a home with a lien and back taxes owed. They don’t want to be responsible for paying extra taxes, and the closing process can take a long time if they have to wait for you to obtain a lien release for the sale to go through. If you want to find a buyer to sell a house with property taxes owed, you need to find the ideal buyer for your situation: a real estate investor.
Sell to a Real Estate Investor
The best way to sell a house with property taxes owed is to sell to a real estate investor. A real estate investor has the time and capital to help you out of a tough situation, and won’t run for the hills if they see a lien on your title. They have the expertise in real estate to give you sound advice and can help you find the best solution for your situation.
When you sell your home to a real estate investor, you can complete the sale on your timeline. You also won’t have to worry about making any costly repairs or changes to your home, hiring a Realtor, or waiting around while they secure financing. Many real estate investors prefer to close on home sales quickly, with fast cash offers, so you can resolve your debt and close on your home sale quickly and without the hassle of a traditional sale.
If you have back taxes on your home and are trying to sell, or aren’t sure what to do, talk to the team at CORI LLC. We’d be happy to clearly outline all of your options, and help you decide on a path that best for you, your home, and your finances.