When you have a lien on your home from tax debt, your increasing penalties and interest are likely adding pressure to your situation. Because tax debts continue to climb as time passes, taking quick action will save whatever equity remains and remove the dark cloud that lingers over your head. Whatever you do, don’t try to hide the issue or list your home before you’ve devised a strategy to free yourself from your lienholders’ entanglement, as this could lead to further costly delays.
Selling your home may be the solution to resolving your problem; however, the process is already fraught with stress, and the presence of a lien or tax problems will complicate matters. Therefore, you must clear this debt to sell the property and do so in a specified order dependent upon the status of the lienholder, such as primary or secondary mortgages or tax liens that are always primary. In more complicated cases, it’s advisable to work with a professional tax advisor or attorney to assist you.
Once satisfied, whatever you do, ensure that you receive documentation that you paid off the debt with a recorded lien release, lien discharge, or satisfaction of mortgage. If you find that the lien is still on the house and have proof you’ve paid the taxes, you’ll need to file a request for a certificate of release before closing. Ready to learn more about how to tackle this situation? Read on as we discuss how to handle liens and tax problems when selling your house Virginia Beach.
Expiring
If you’re nearing the ten-year mark of living underneath the lien and the amount is low, the IRS may permit the debt to expire. However, take great caution with this approach as there is only a slight chance of your debt simply vanishing. So typically, instead, Uncle Sam files suit against the debtor for collection.
Pay It Off
If you have the funds available, the simplest way to handle liens and tax problems when selling your house in Virginia Beach is to pay off the debt. This will clear the title and make the sale much simpler. Of course, this may not be an option for everyone. If you cannot pay off the debt, you will need to work with the lien holder or the IRS to come up with a payment plan or some other arrangement. This can be a complex process, so it is important to seek professional help if you are in this situation.
Negotiate
You could try negotiating to handle liens and tax problems when selling your house Virginia Beach if there isn’t enough equity to cover the total debt. An attorney should be involved in this process.
Dispute
Disputing the debt is another way to handle liens and tax problems when selling your house Virginia Beach; however, you must have a qualified tax advisor appointed to represent you if the debt is with the IRS.
Buyer
While complicated, another way to handle liens and tax problems when selling your house Virginia Beach is to look for a cash buyer to purchase the property, if circumstances allow this option legally, knowing that the buyer must pay the debt if they want to sell the home in the future.
Wise Choice Home Buyers
Your best option is to sell for cash to a direct buyer from Wise Choice Home Buyers and work the payment from your proceeds into the closing. Then, talk to the experts at Wise Choice Home Buyers who can help. We’ll relieve you of the burden of liens and tax problems when selling your house Virginia Beach with the quick, easy and transparent process at Wise Choice Home Buyers. Furthermore, the direct buyers at Wise Choice Home Buyers never charge commissions and offer guaranteed closings, working with you for the most convenient date, usually within a matter of days. In addition, you’ll have the numbers in your hand to compare our offer against the profits you’d realize with a traditional listing, so you can decide what the best option is for yourself. Call Wise Choice Home Buyers at 757-800-1870.