If your home has a tax lien on it, you’re probably experiencing financial difficulties. But a tax lien on property in Orlando doesn’t have to be the end of the road! Often homeowners who are struggling with their property taxes or mortgage don’t know where else they can turn and eventually face foreclosure which will destroy credit scores in addition to costing them money for years.
However, there are ways to avoid foreclosure or other legal actions. To remove a tax lien, you need to pay allowed taxes and any late fees and interest you may have incurred. The easiest way to do this is by selling your property and using the profit for pay off on your debts.
The following tips will help you sell the property with a tax lien on it easier and more profitably.
What Is a Tax Lien?
A tax lien is a type of property lien levied by the Florida Revenue Service when a property owner falls behind in their payments. Before placing this, they will send you notice and bill (Notice of Amount Due).
If you don’t pay your taxes in full within 90 days after receiving the Notice of Amount Due, they FRS will take further action. They may outsource your debt to a collections agency, or they may file a tax lien. Failure to pay certain taxes, like property or federal taxes, within set timeline automatically triggers a tax lien on property in Orlando.
Homeowners often find themselves in difficult situations that can lead to financial hardship, which could be the result of a lay-off from work or an unexpected medical expense. These events cause more stress on top of life’s already present stresses and make it hard for some people to pay their taxes at all. To remove a tax lien, you could sell your property and use the proceeds to pay off what’s owed.
Get Ready to Sell
If you’re going to sell your house, don’t forget that a buyer’s first impression of the property will be one of its most important factors. If there are any problems with plumbing, foundation or kitchen, it might make sense to fix them before putting your home on the market!
A fresh coat of paint and mowing the lawn can go miles in making buyers feel like they are getting more than what they bargained for. You don’t have to spend a lot of money or time on improving your home if you focus on what’s important.
When determining your selling price, you’ll need to consider what other comparable houses in the area are going for. Also look at current market conditions and research recent trends before setting a bottom line on pricing! Next, you should see how much mortgage is left on your home and if any property taxes are owed.
The goal is to sell the house for enough money so that it covers what’s remaining in your loan and pays off any overdue tax bills. Sure, it would be nice to get rid of all your debts and not owe anything left. But if you set the price too high then people might just walk away from buying this house because they think it isn’t worth as much as you’re asking for.
Offer in Compromise
Another way to get rid of a tax lien is by negotiating an offer in compromise. If you have almost enough money for your taxes, the FRS or IRS may consider allowing an offer in compromise. The tax service will determine whether you have the financial capability to pay the agreed rate, current expenses, income and equity of your assets.
If they believe that there is a likely chance for repayment then they may agree on accepting payment at an affordable low sum. However, for some people this option may not be the best. If your offer is too low then the tax authority might choose to foreclose on your home instead.
Consider a Cash Sale
So, can you sell a house with a tax lien against it? Only with difficulty, but yes. If you’re going the traditional route of listing your home yourself or working with a real estate agent, you should know that removing an existing tax lien will be tough and require special attention to detail.
A cash sale may be the best way to quickly get rid of a tax lien on property in Orlando. SellThatFloridaHouse can help. Call us today at (407) 228-3682 to get started! We’ll have one of our team members contact you within 24 hours to get you a no obligation cash offer. Our team is always happy to help. If you have any questions throughout the process or want some more information about selling a house with tax lien, just ask us!