An important question to ask when selling your home is, how will you handle the taxes? For example, if I sell my house fast but don’t have enough money for tax payments and mortgage payoffs at closing.
You have options! Here, we’ll outline what those options are and weigh the pros and cons.
What Happens When You Owe Property Taxes
Property taxes are typically paid twice a year, usually once the winter and again in summer. When you sell your home, any past-due property tax amounts will be prorated to close date as of when they purchased it. This way the buyer gets a clean slate on their purchase.
Before you sell your home, make sure that delinquent property taxes have been taken care of. If not, the county or city may place a lien on it which will complicate matters if you can’t pay what’s owed with proceeds from the sale.
Pay Taxes as Quickly as Possible
If you have the funds in your savings or can liquidate the funds needed to pay back taxes, do so as soon as possible. If not, there are other options available for settling debts owed on property before selling it and moving forward debt-free.
Pay Taxes Using Sale Proceeds
The most common way to sell a house with property taxes owed is paying back the taxes with proceeds from the sale. At closing, your home will go towards repayment of mortgage and then lien. An attorney should supervise transferring funds so that delinquent tax are paid in full as well as any remaining balance going to sellers at close after Realtors’ fees have been taken care of.
Because property taxes on your house may not be paid off, you are responsible for bringing the rest of that money to closing. If this is unclear and if it isn’t something you can do before selling your home, then maybe looking for another option would make more sense.
Request a Lien Release
For some, they’ll need to get a certificate of discharge from the taxing agency if their debt has been too heavy for them. The certificate does not forgive your taxes or extend payment indefinitely. What it can do is allow you to release lien on property and transfer that burden onto yourself. You will still have repayments but this way you’ll be able sell off your house and pay back debts with profits after sale.
Real estate investors are interested in buying homes with property taxes owed, so you should use them as your target market when selling a home. A lien release makes the sale process go much more smoothly and quickly for both buyer and seller; this way they can walk away knowing that their purchase was complete without any surprises or red tape to deal with.
Sell My House Fast to Cash Buyers
The best way to answer the question of can I sell my house fast with property taxes owed is by contacting and working with real estate investors. These professionals have the time, resources, and expertise needed for such a task. They will be able to help you find solutions that are right for your situation because they focus on this type of work exclusively so can offer sound advice as well as provide support in finding those solutions.
Selling your home to a real estate investor is the fastest and easiest way to sell. You can move on with life without worrying about costly repairs, hiring Realtors or waiting around for financing. Many investors prefer fast cash offers so you won’t be stuck in debt any longer than necessary when selling your property.
If you owe taxes, but still want to sell your home there are ways. Whether you can pay back the taxes before selling or use it as a payment for an existing debt, knowing where to turn and how best to work with your situation will help get rid of that financial burden while moving onward in a new place.
At SellThatFloridaHouse, we are happy to help you decide on a plan that best suits your needs. We have the experience and knowledge of what is needed for homeowners who owe property taxes or simply don’t know how to proceed with their homes in this day and age.