If you have unpaid property tax bills but want to sell your house, you might be feeling stuck. We buy houses in the Wichita area, and one of the most common questions people ask us is, “Can you sell a house with back taxes owed?”
The good news? You can sell a house even if you owe the city money for property taxes. If you opt for a traditional listing, it might be more complex than a typical sale, but it’s still possible. Alternatively, you can work with a cash buyer, making the process easier and less stressful.
What Happens When You Don’t Pay Property Taxes?
One reason many homeowners end up in trouble is that they don’t have a clear understanding of property taxes. Municipalities require every homeowner to pay taxes based on the value of their property. The funds cover the costs of local services like police, fire, education, and garbage pickup. But if you miss payments, the city can place a property tax lien on your home, which is a legal claim that remains in place until the delinquent property taxes are paid.
A tax lien doesn’t mean that you’ve lost your home, but how can you sell a house with back taxes owed? The taxes typically must be paid during the sale process to clear the lien.
How Selling a Home With Back Taxes Works
Buyers, title companies, and mortgage lenders all require a clean title to close, and a tax lien clouds your house’s title.
When selling a property with unpaid taxes, in most cases, any amount owed is paid from the home sale proceeds at closing. If you also have a mortgage, you may need mortgage lender approval for the sale if the sale won’t fully cover the mortgage balance and unpaid taxes.
Paying the back taxes at closing is a straightforward way to get current. It works best if you have equity in the property, so the title company can deduct what you owe from the sale proceeds.
If that’s not an option, or you want to continue living in the house, you may be able to negotiate a tax debt repayment plan that allows you to satisfy the debt and avoid a lien.
If you don’t have enough equity in the house to cover the tax debt or if it needs significant work before you put it on the market, a third option is to sell to a cash home buyer. Cash buyers don’t need mortgage lender approval and can purchase houses as is, even when the owner owes back taxes. They don’t charge fees or real estate closing costs, so you can walk away with less stress.
Professional Home Buyers Can Help
Professional Home Buyers works with Wichita homeowners facing challenging situations and wondering, “Can you sell a house with back taxes owed?”
Whether you need to sell fast, avoid foreclosure, or you’re dealing with a house with a lien on it, they can help. Call (316) 686-7355 (SELL) today to learn more about your options and get the support you need.