By Cornelius Jackson
Selling a Home with a Lien
The good news is that you can sell your home even though there is a lien against it. In fact, by selling your home, you will have enough resources to cover your tax debts. And if your property sells for just the right price, you might be able to clear both your mortgage and tax lien. However, the process of selling a home with a lien is a lot more complicated than selling a regular house with title issues accounting for 11 percent of all delays. What are your options?
1. OPT TO PAY THE LIEN BEFORE LISTING YOUR HOME The easiest way to resolve and move on with your home sale is by paying the amount you owe to your local government or federal government. Depending on the lien you are working with, selling your home could be easy or difficult. Some types of liens are unusual and pose the risk of turning off potential buyers. The Department of Revenue Lien or that of the IRS is one of the more complicated liens. This kind of lien will require you to involve a CPA or attorney to clear it. If you can’t pay this lien, your CPA or Attorney will negotiate that you pay a portion of the debt. In the worst scenario, the revenue department may ask you to substitute collateral; that is, the lien is moved to a secondary property you might also own. In the case of materialman’s lien, consider
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t one point, you might have forgotten or purposefully failed to pay your property taxes, and as a result, your city or county government placed a tax lien or legal claim on your home. And like a shadow, that lien against your property will show up every time there is a title search. For that reason, you may feel that selling your home is an impossibility.
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