Can I Still Sell My House Fast If I Owe Back Taxes?
If you owe back taxes on your house, you could lose the property to a tax sale or foreclosure. The government could seize the property and sell it to reclaim the taxes. Even if your house is paid for, you could still lose it simply because you haven’t paid your taxes. Even after you sell the house, you may still owe taxes to the government.
However, you may be able to get out of your taxes if you sell your house to a local home buyer in St. Louis, Missouri. A local buyer may be able to buy your house and assume payment of the taxes, allowing you to walk away free and clear. You can also avoid other expenses such as repairs, closing costs, or realtor commissions. This is a better option than a traditional sale.
Why Are Property Taxes Mandatory?
If you own a home, you are required by Missouri law to pay property taxes. The city and state use taxes to fund various services such as parks, roads, libraries, or schools. How much tax you pay depends on your home’s current appraised value. Regardless of what your home is worth, the taxes are almost always too high.
In many cases, a service provider on behalf of your home’s mortgage lender will collect property taxes as part of the monthly mortgage payment. They will pay the taxes on your behalf through an escrow account. If the taxes aren’t collected and paid through escrow, you must pay them on your own. If you do not pay the taxes, the past due amount turns into a lien on your house.
What Are the Penalties for Not Paying Property Taxes?
Missouri follows a step-by-step process that allows the taxing authority to sell your property and claim past due taxes. The process involves the following steps:
Tax Lien Auction
A county treasurer may sell the tax lien on your house at an auction or, in some cases, in a private sale. The winning bidder gets a tax certificate and becomes the lien’s owner. The county treasurer must mail you notice before the tax lien sale. It must also publish the notice of sale in a newspaper or online.
Tax Lien Sale Redemption
After the tax lien sale, you get at least one year to pay off all lien charges and interest. This is known as property redemption. After one year expires, the tax-lien purchaser can foreclose on your Missouri home by filing a lawsuit in court. As part of the foreclosure, the home will be sold to satisfy the debt. However, you can still redeem up until the court confirms the sale, which finalizes the foreclosure.
The county treasurer may start a foreclosure against you in court. The court will enter a judgment and order the home sold at auction to satisfy the tax debt. After the court confirms the sale, the winning bidder gets a deed to the home.
The only way to stop the tax lien and/or foreclosure is to either pay the taxes and satisfy the debt or sell your house fast before the proceedings are complete.
Can I Sell My House If I Owe Back Taxes?
The answer is yes, you can sell your house even if you owe back taxes. A tax lien on your property, either by the IRS or another organization, should not keep you from being able to sell your house fast. It should help your situation. Liens do extend to the value of your property as well as your other financial holdings. So, when you have a lien on your house, how do you sell it?
First, you need to look at the amount of back taxes you owe versus your property’s value. This will determine whether selling the house will pay off the taxes in full. In many cases, the IRS will require that you factor in your owe taxes when estimating the profit you will make off the sale. If your house is worth more than the taxes and selling the property will pay off the full amount of the taxes, the sale of your house or property will most likely be possible.
Sell Your House Today and Avoid a Tax Foreclosure
Selling your house does not have to be complicated or a long, drawn-out process. Klamen Real Estate Group makes it possible to sell your house fast in St. Louis as-is for cash. To find out more about the benefits of a cash sale, call us today at 314-721-6800.