Tax liens are like a giant stop sign for property owners who are ready to sell. Especially for those faced with a tax lien placed on their property so high that selling their home is the only option available to repay the debt, which will be due at closing. A word to the wise, working with the government, be it local, state, or the IRS, towards settling a tax lien is a long process, so don’t wait until your house sells to contact the tax authorities and begin to work with them towards a solution.
Take action immediately to tackle your tax lien head-on. The more swiftly you deal with the problem, the more money you will save because high penalties and interest will increase the debt day by day, depleting any equity remaining in the property.
While you should always consult a professional tax adviser to discuss your specific circumstances, our experts have gathered the following information about how to sell a Fort Myers house when you owe back taxes.
Abatement
In Fort Myers, as in many localities across the country, there exists a mechanism whereby taxing authorities can institute repayment plans or even offer forgiveness for back taxes on residential properties, under certain circumstances. These provisions typically come into play when homeowners face significant financial hardship or meet specific income criteria, which vary depending on the jurisdiction. Such measures aim to alleviate the burden on property owners who may be struggling to keep up with their tax obligations due to unforeseen circumstances such as job loss, medical emergencies, or other financial setbacks. By providing avenues for repayment plans or tax forgiveness, local authorities demonstrate a commitment to supporting homeowners facing challenges, ultimately aiming to help them maintain ownership of their homes and stabilize communities amidst economic uncertainties.
Satisfy the Delinquent Tax
Ensuring that the lien on your Fort Myers property is settled prior to selling, especially if it’s due to outstanding taxes, is pivotal to a smooth closing process. By addressing this obligation preemptively, you not only sidestep potential hurdles during the sale but also uphold your integrity as a seller. Engaging a tax attorney can further fortify your position, as their expertise in negotiating settlements can potentially mitigate the extent of your debt burden. Additionally, it’s imperative to verify that the lien release has been accurately recorded, safeguarding yourself against any discrepancies that might arise post-transaction. Through these proactive measures, you not only streamline the selling process but also ensure a transparent and legally sound transition of ownership for both parties involved.
Dispute
If you’ve resolved the outstanding debt or discovered that the tax lien stemmed from a mistaken identity, seeking legal assistance from a skilled attorney familiar with disputing tax liens is highly advisable, especially when navigating the sale of a property in a bustling market like Fort Myers. These professionals possess the expertise to navigate the intricate legal processes involved in disputing tax liens, ensuring that your rights are protected and that any erroneous claims are rectified efficiently. With their guidance, you can proceed with the sale of your house confidently, minimizing any potential obstacles or complications that may arise from the lingering tax lien issue.
Certificate of Discharge
You can approach the IRS for a certificate of discharge, which will remove the lien from your property. However, while you can still sell a Fort Myers house when you owe back taxes, you will still owe the debt.
Pay at Closing
It is common for the debt to be settled at the closing on a Fort Myers house when you owe back taxes. After you’ve verified the exact amount with the title agent handling the closing, ensure you have requested your certificate of release. A state representative will attend the closing, collect the tax debt from the title company’s closing agent, and issue a loan release. will
Expiration
Though this is an infrequent occurrence, to say the least, lower tax bills owed to the IRS may be allowed to expire after the ten-year statute of limitations on tax debts, meaning you may not have to sell a Fort Myers house when you owe back taxes. Hoping that your debt will expire isn’t advisable as your plan of action.
Bankruptcy
If you are unable to pay the debt, claiming bankruptcy may just be your best option to sell a Fort Myers house when you owe back taxes. If you want to maintain ownership, however, you will still owe the debt.
Sell My House Now USA
Sell My House Now USA will buy your house for cash in Fort Myers and work directly with the title company, making it an easy process to sell when you owe back taxes. The professionals at Sell My House Now USA have years of experience helping homeowners just like you. With simple contracts and a straightforward process, you won’t even have to worry about making repairs; Sell My House Now USA will buy your home as-is. Closing is fast and guaranteed, typically in a matter of days, or if you need a little more time, just let Sell My House Now USA know the best day for you. Contact Sell My House Now USA at (239) 360-3176 today! We also buy and sell houses in North Fort Myers and Lehigh Acres!