Benefits of Selling Your Tax Lien Property
Do you have a Tax Lien on your Long Island home because you are behind in your property tax payments to the county or local municipality? When this occurs you now owe not only taxes, but penalties and interest as well. And it will continue to accumulate until it is paid in full.
It is crucial for you to know the difference between a tax lien and a tax levy. According to the IRS, a tax lien is a claim on your house and could be negotiable. A tax levy is a seizure of your property and you will lose any and all of the equity in your house to a property tax foreclosure.
Most of the time the lien on your home gets sold, usually to an investor. Whoever buys it pays your taxes to the municipality and then they now own the lien. This means, the investor (rather than the government) is now owed all the back taxes, penalties and interest. It is they who will now come to you for reimbursement. At some point, if they don’t get paid, the lien converts to a levy and the house can now be foreclosed by the lienholder.
Most people get behind on their taxes because of an unexpected event or circumstance that causes a financial burden. Sometimes this due to loss of job, and other times, it may be due an inheritance where the previousl owner didn’t pay the taxes. According to this article from Bankrate.com, most people that are issued a tax lien owe at least $5,000 in back taxes. If you lack the resources or the income to pay this amount (or more) you should probably do something to save your Long Island home as soon as possible. Having any type of lien can severely damage your credit, causing all kinds of other potential issues in your life.
What Is A Tax Lien Property?
A tax lien is when your local or state government makes a claim on your home for any unpaid taxes that you owe. Selling your home quickly for cash can eliminate the stress that goes with having a tax lien on your property in the first place.
Why Should I Sell My Tax Lien Property?
Selling your tax lien property can help you avoid any additional penalties and interest that you may receive if you keep your home.
What Are The Advantages Of Selling My Tax Lien Property?
There are several advantages of selling your tax lien property such as:
- Lifting the lien off of your home
- Keeping the difference of the sale after the tax lien is paid off
- Avoid further penalties as well as any possible consequences
What Happens After I Sell My Tax Lien Property?
If an outside investor purchases the tax lien, then you are still the homeowner. This means instead of owing the government money, you owe this investor money plus any interest the longer it takes you to pay it off. Selling your home quickly for cash avoids any extra interest and allows you to keep any money that is left over after the tax lien is completely paid off.
While not being able to pay your property tax and receiving a tax lien on your house might seem like the end of the world, we at Long Island Cash Home Buyer are here to help. We can counsel you to determine which options are best for you at any stage of the Tax Lien process. Do you want to try to keep the house? We can show you the best way to do that. Do you want to sell the house and get out from under? We can buy the house for cash, close quickly and relieve the stress and burden of your tax lien. We will be honest and forthright in going over all of your options and answering all of your questions.
Contact us for more information or a confidential, discreet consultation on how we can help you with your Tax Lien today.