If you have a tax lien on your house in NJ, can you still sell it?
The answer to this question is not as straightforward as you might think. In this blog post, we will explore the options that are available to you if you want to sell your house with a tax lien.
We will also discuss the implications of each option. So, can you sell your house with a tax lien in NJ? Keep reading to find out!
Table of Contents
What Is A Tax Lien On Your Home?
A tax lien is a legal hold that the government makes on your property. The lien gives the government the right to seize and sell your property if you don’t pay your taxes.
The government can place a tax lien on your home if you owe back property taxes, and the lien will stay on your property until the taxes are paid. If you’re thinking of selling your home, you’ll need to pay off the tax lien before you can complete the sale.
A tax lien can also make it difficult to get a loan against your property. If you’re planning to refinance your home or take out a home equity loan, you’ll need to pay off the tax lien first.
Can Tax Liens Affect Selling My Home?
If you’re thinking of selling your home, you may be wondering if tax liens can affect the sale. The answer is yes – tax liens can definitely make selling your home more difficult.
Tax liens are placed on the property when the owner owes back taxes to the government. These liens give the government a legal claim to the property, and they can make it very difficult to sell the property without paying off the debt first.
In some cases, tax liens can even lead to foreclosure. If you’re looking for the best time to sell your home but have a tax lien on the property, it’s important to consult with a real estate attorney or tax specialist to determine the best course of action.
Our team at HomeBeacon also assists homeowners in this type of situation.
What Happens If I Don’t Pay NJ Property Taxes
In New Jersey, property taxes are due on October 1st of each year. If you don’t pay your NJ property taxes by the due date set, you will be charged a penalty of 8%.
In addition, your municipality may also place a lien on your property. A lien is a legal claim against your property that must be paid off before you can sell or refinance your home.
If you don’t pay your property taxes, the municipality can eventually foreclose on your home and sell it to cover the outstanding tax bill. So it’s important to pay your property taxes on time to avoid these penalties.
What Are My Options If I Want To Sell My Home With A Tax Lien?
If you find yourself in the situation of wanting to sell your home but having a tax lien on the property, there are a few options available to you.
First, you could try to negotiate with the IRS to have the lien released. This can be a complex process, and there is no guarantee that the IRS will agree to do so.
Second, you could look into getting a loan to pay off the lien. This option can be expensive, and it may not be possible to get a loan if your credit is poor.
Finally, you could sell the property through HomeBeacon’s network of investor partners. This option allows you to sell the property in as-is condition, and the proceeds from the sale go towards paying off the lien.
This option can help prevent having a negative impact on your credit score which is why many homeowners choose to go with this route.
The Bottom line
So, can you sell your house with a tax lien? The answer is yes and no.
You can certainly list and sell your home while it still has a tax lien on it, but the sale may not go through if the lien isn’t paid off first. If you’re looking to get rid of your home but still owe back property taxes, selling as-is with investors at HomeBeacon may be your best bet.
Reach out to our team today for more information about how to sell your house with a tax lien. We have helped families across the nation sell their houses fast in situations such as divorce, job loss, inheritance, and tax liens.
Ronaldo Stewart is a seasoned real estate professional with three years of experience in helping people sell their homes and has established himself as a trusted and knowledgeable resource in the real estate community.