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\u2019t try to hide the issue or list your home before you\u2019ve devised a strategy to free yourself from your lienholders\u2019 entanglement, as this could lead to further costly delays.<\/p>\n\n\n\n
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\u2019s advisable to work with a professional tax advisor or attorney to assist you. <\/p>\n\n\n\n
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\u2019ve paid the taxes, you\u2019ll 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 Gary, Griffith, Lake Station, Hobart, Merrillville, Crown Point, Schererville, Portage, Valparaiso, Chesterton, Cedar Lake, Hammond, Michigan City, Hebron. <\/p>\n\n\n\n
While sticking your head in the sand is not the best option, if you\u2019re 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.<\/p>\n\n\n\n
Of course, if you should have the funds available, the simplest way to handle liens and tax problems when selling your house Gary, Griffith, Lake Station, Hobart, Merrillville, Crown Point, Schererville, Portage, Valparaiso, Chesterton, Cedar Lake, Hammond, Michigan City, Hebron is to pay off the debt.<\/p>\n\n\n\n
You could try negotiating to handle liens and tax problems when selling your house Gary, Griffith, Lake Station, Hobart, Merrillville, Crown Point, Schererville, Portage, Valparaiso, Chesterton, Cedar Lake, Hammond, Michigan City, Hebron if there isn\u2019t enough equity to cover the total debt. An attorney should be involved in this process.<\/p>\n\n\n\n
Disputing the debt is another way to handle liens and tax problems when selling your house Gary, Griffith, Lake Station, Hobart, Merrillville, Crown Point, Schererville, Portage, Valparaiso, Chesterton, Cedar Lake, Hammond, Michigan City, Hebron; however, you must have a qualified tax advisor appointed to represent you if the debt is with the IRS.<\/p>\n\n\n\n
While complicated, another way to handle liens and tax problems when selling your house Gary, Griffith, Lake Station, Hobart, Merrillville, Crown Point, Schererville, Portage, Valparaiso, Chesterton, Cedar Lake, Hammond, Michigan City, Hebron 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.<\/p>\n\n\n\n