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Dealing With A Property With Tax Defaults

How to Sell My House Fast to Save From Tax Defaults

 

The local government imposes property taxes on homeowners. If the taxes are unpaid for a prolonged period of time, the local government takes action in collecting delinquent taxes. And one of the methods of collecting tax defaults is by auctioning the property so that the revenue generated will be used to pay for the property.

What Are Property Auctions on Tax Defaults Sale?

As mentioned earlier, the local government is bent on collecting delinquent taxes. If you haven’t made any payments on your property tax, the government will demand payment on tax defaults by selling your property to the highest bidder. In a nutshell, tax-defaulted property auctions are held by local governments so that delinquent homeowners are able to pay off their tax debts.

It is important to know that that the price of a tax-defaulted property starts at the back taxes that are due to the local government and the prices go higher as bidding goes on. Most liens on the property under tax defaults including deed of trust, mortgage, and mechanic’s liens are removed when the property is sold at a tax-defaulted auction. What remains is the government lien.

How Property Tax Sales Work

Each state has its own law when it comes to tax sales. In most cases, the taxing authority does not need to go to court to hold a tax sale. The taxing authority files a list of delinquent taxes and publishes a copy in the newspaper. Once this happens, the homeowner receives a personal notice about the pending tax sale. After which, a public auction is commenced.

The bidding war starts between buyers and the price starts at the amount that covers the taxes including the interest, and penalties that are owed to the taxing authority or local government. After bidding, the winning bidder receives a tax deed or tax lien certificate. Below is a discussion of the two:

  • Tax deed sales: In a tax deed sale, the taxing authority sells the full ownership and rights to the home. The purchaser gets the title to the property.
  • Tax lien certificate: Getting a tax lien certificate sale does not mean ownership of the property. Instead, the local government sells the liens and the purchaser gets a tax lien certificate. This gives the purchaser the right to take over the position of the taxing authority to collect full payment of the past due taxes from the delinquent taxpayers. If the delinquent taxes are not paid on a specified date, the purchaser of the lien can foreclose the lien and convert the certificate to a deed to obtain full ownership of the property.

Can I Sell My House Fast to Save Me from Tax Default?

The mere idea of the local government seizing your home to be auctioned can be scary, but you don’t have to succumb to your fear just because you cannot pay your property taxes. Even if your property goes into a tax sale, you have options to deal with your problem.

One of the things that you can do is to sell your home to save it from a tax default lien. But you might be wondering and pondering on the question “how I can sell my house fast with a property tax lien on it?” While it can be challenging to sell your home with a tax lien on it, there is a viable option that can help you pay off your debts.

So, let’s say you are selling your house for $150,000 and you still need to pay $100,000 for your mortgage debt. Then, there’s the tax lien of $5,000. At the closing of the sale, you will be left with $45,000 as your net profit. You can use it to start anew or you can generate more funds so that you can buy back the property from the new owner if it has a sentimental value.

When selling your house with a lien, the amount of the lien will be added to the expenses during the closing of the sale. The thing is, you need to make sure that the equity is enough to cover the lien price and also your debt. If you want to “sell my house fast” and save yourself from tax defaults, there are many ways to do it. The important thing is, the money you have generated in closing the sale should be enough not only to cover your debts but also the lien. This is necessary so that the buyer can take a clear title on your property.

Seek Help on How To “Sell My House Fast”

Selling your house fast with a tax default can be challenging considering that there are many laws surrounding such sale. This is the primary reason why you need to seek help from the right people to help you sell your house despite the situation or its condition. It will benefit you more if you find a realtor who is experienced in making a short sale so that you can cover the liens, mortgage, closing cost, and basically everything else that you owe to the local government.

Aside from someone who has good short sale experience, you need to find someone who can professionally assess the value of your home in relation to its current market value. Since doing it by yourself can be a difficult feat, if not impossible, seeking help from a professional house buyer who can offer cash for houses immediately is your best option. Professional house buyers like SellQuickCalifornia can offer you attractive cash prices for your home no matter the location and the situation you are currently in.

As someone who has to deal with tax defaults, you need to be able to pay your delinquent taxes and avoid any skirmishes with the federal law. If selling your house is the best solution to your problems, you need to connect with us so that your question of “how to sell my house fast” will have immediate cash quotes.

 

 

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