If you’re one of those who owe property taxes, you might be curious about how this would affect your ability to sell your house. These back taxes makes the selling process of your home complicated. Whether you inherited a house with tax debt or not, you can still sell the property regardless of your financial status. Let’s start with some basic concepts before we look at some of your options.

A Property Tax: What Is It?

Usually, homeowners pay their property taxes twice a year—in the winter and the summer. When you sell your home, you must pay any taxes payable at the closing. The sum is specified if the deadline falls in the middle of the winter or summer tax season, which gives the home buyer a fresh start.

Before the sale closes, you must take care of any outstanding property taxes that the county or municipal have filed a lien, or claim, on your property. Paying your taxes using the proceeds from the sale of your property becomes challenging if you can’t pay both the tax and your mortgage.

Can I still sell my house if I still owe property taxes?

You can sell your house even if you have unpaid taxes. If you wish to sell a home with unpaid property taxes, you have two options: pay the taxes in full before the sale or sell it and use the proceeds to settle the obligation.

The best action is to pay the unpaid tax and release the lien if you have the money in savings or can liquidate the necessary funds. You will incur more debt as interest charges rise as you delay paying back the tax. You can request to have the lien removed from the title of your home once you have paid the unpaid taxes. The sooner you settle your property’s tax debt, the better off you’ll be.

How Can I Sell My House Fast In NJ?

You might be able to utilize the proceeds from the sale of your house to pay off debts incurred from unpaid property taxes. Otherwise, you must find a real estate investor to buy your property or get a lien release.

Pay Taxes Due With Proceeds From Home Sale

The most typical method of selling a home with unpaid property taxes is to utilize the sale profits to settle the debt. The mortgage and the lien will each receive a portion of the proceeds from the sale of the property. A closing attorney will supervise the fund transfer to ensure that all previous taxes are paid. After closing costs and Realtor fees, the seller will receive any remaining funds.

To pay after closing, obtain a lien release.

This certificate can allow the lien to be released from the title of the property and transferred to you. But, it cannot forgive the debt or extend your repayment period indefinitely. You must still pay the owed taxes, but you will be able to sell your house and pay back the debt after the sale. In some circumstances, the taxing agency may grant a lien release known as a “certificate of discharge.”

The drawback of this approach is that it may take some time, delaying the sale’s closing, and worst is the backing out of the buyer.

A home with a lien and back taxes unpaid won’t often intrigue home buyers. They don’t want to be liable for paying additional taxes, and if they have to wait for you to get a lien release before the sale can close, it will prolong the closing process. If you want to sell a house with unpaid property taxes, you need to find the best buyer for your unique situation, a real estate investor.

Always Work With Experts

A skilled investor can advise you on the best course of action to take when dealing with property taxes. It could be challenging to know what to say if this kind of talk is unfamiliar to you. Make sure you’re working with the right person by checking. Make sure to work with Elite Home Buyers.

We’ll Buy Your Home Fast For Cash.

If you wish to sell your home in New Jersey, selling straight to Elite Home Buyers NJ, a reputed local home buying company, can streamline the process (even if you owe back taxes). As qualified real estate investors, we have expertise in assisting homeowners in navigating challenging circumstances like this. The best part is that we buy houses fast for cash regardless of their shape, so you won’t have to worry about incurring fines or expensive repairs.

Call us at 856-474-1258 today to receive your fast cash home offer.

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