Tax liens are a deal killer for owners trying to sell houses in Raleigh. Especially for those faced with a tax lien placed on their property so high that selling their home is the only option available to repay the debt, which will be due at closing.
Take action immediately to tackle your tax lien head-on. The more swiftly you deal with the problem, the more money you will save because high penalties and interest will increase the debt day by day, depleting any equity remaining in the property.
While you should always consult a professional tax adviser to discuss your specific circumstances, the following information may help with how to sell a Raleigh house when you owe back taxes.
Many local taxing authorities can create a repayment plan or forgive back taxes for a Raleigh house, should the owner prove significant hardship or meet specific income guidelines. This seems like the most attractive option, but there will be a substantial amount of paperwork needed to be filled out before you can know if you qualify.
Satisfy the Delinquent Tax
Paying off the lien before selling your Raleigh house when you owe back taxes is the most straightforward way to avoid any problems with the closing. It is a good idea to contact a qualified tax attorney to see if they can negotiate a settlement on your behalf to satisfy your debt. Make sure that the lien release gets recorded.
If you’ve settled the debt or the lien for back taxes is due to an error in identity, it is well worth hiring an attorney with experience in disputing tax liens to help you sell a Raleigh house.
Certificate of Discharge
You can approach the IRS for a certificate of discharge, which will remove the lien from your property. However, while you can still sell a Raleigh house when you owe back taxes, you will still owe the debt.
Pay at Closing
It is common for the debt to be settled at the closing on a Raleigh house when you owe back taxes. After you’ve verified the exact amount with the title agent handling the closing, ensure you have requested your certificate of release. A state representative will attend the closing, collect the tax debt from the title company’s closing agent, and issue a loan release. will
Though this is an infrequent occurrence, to say the least, lower tax bills owed to the IRS may be allowed to expire after the ten-year statute of limitations on tax debts, meaning you may not have to sell a Raleigh house when you owe back taxes. Hoping that your debt will expire isn’t adviseable as your plan of action.
If you are unable to pay the debt, claiming bankruptcy may just be your best option to sell a Raleigh house when you owe back taxes. If you want to maintain ownership, however, you will still owe the debt.
Wake County Home Buyers
Wake County Home Buyers will buy your house for cash in Raleigh and work directly with the title company, making it an easy process to sell when you owe back taxes. We have bought houses with tax liens attached to them and the lien was satisfied at closing. These sales are more tricky than traditional cash sales and there is some additional paperwork that needs to be handled. While this kind of sale will have some hassles as a result of dealing with the lean, working with a local cash home buyer will make the process less painful.
The professionals at Wake County Home Buyers have years of experience helping homeowners just like you. With simple contracts and a straightforward process, you won’t even have to worry about making repairs; Wake County Home Buyers will buy your home as-is. Closing is fast and guaranteed, typically in a matter of days, or if you need a little more time, just let Wake County Home Buyers know the best day for you. Contact Wake County Home Buyers at (919) 473-6885 today!