Can you sell your house with a property tax lien in Atlanta, GA?
In this article, we’ll delve into what a property tax lien is and whether it’s possible to sell your house with one. We’ll answer questions such as “How can I find out if I have a property tax lien?” and “What are my options for selling my house?”
What is a property tax lien in Atlanta?
There are basically two types of property tax liens: Local government tax liens and federal government tax liens.
Local government tax lien: When you fail to pay property taxes or utility bills such as water bills, the local government can put a lien on your house, which means they take possession of your property and sell it to the highest bidder to collect the unpaid debt that’s owed. According to the Fulton County website, the Sheriff’s Tax Sales are conducted on the courthouse steps at 136 Pryor Street SW in Atlanta on the first Tuesday of the month between 10am and 4pm.
IRS tax lien: According to the IRS website, “If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize, and sell any type of real or personal property that you own or have an interest in.” The IRS will not call or email you; they will use the US Postal Service to contact you. If your debt isn’t paid off, they can sell your property, and the tax collector will use the money to pay the taxes.
How do you know if there is a lien on your house?
If you have unpaid taxes with the IRS, you’ll receive a notice from them outlining what you must do to pay the debt. If you ignore that notice, you’ll receive several other notices before the IRS files the Notice of Federal Lien on public record and auctions off your property.
In Fulton County, Georgia, you will also be served several warnings and notices by US mail before your house goes to auction. You can also do a search of the Georgia Property Records for Fulton County to see if there is a tax lien on your property.
What to do if you’re facing a tax lien on your Atlanta property?
When it comes to unpaid taxes, whether federal or local, the sooner you address the situation, the better. Procrastination only makes things worse. Act as soon as you realize that you are in debt, or that you will soon be in debt due to your circumstances, so you don’t lose your house. Courses of possible action include:
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Secure a payment plan to pay off your tax debt
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Apply for a personal loan to pay off the tax debt
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Dispute the lien with the IRS
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Apply to the IRS for an IRS Certificate of Discharge
Can you sell a house with a property tax lien?
If none of the above are possible or don’t pan out, you can sell your house before it’s scheduled for auction, if you act soon enough. Be aware that the tax debt will be paid off first, before the mortgage company is. If you don’t have enough equity in your house, or if you can’t sell it for a high enough profit, you will then still owe your mortgage company after you pay off the debt for taxes.
You can sell your house FSBO (for sale by owner) or via the traditional route with a real estate agent. Making repairs and upgrades to prepare for sale can be expensive, and so is paying for staging and photography. If using a real estate agent, you should also factor in a real estate commission, which historically has been 5-6%. Prepping for a traditional sale also takes up precious time.
An easy and convenient way to sell your house if it has a property tax lien
There’s an easier and faster way to sell your house in Atlanta if it has a property tax lien. Selling to HomeVestors® means no repairs, cleaning, staging, or commissions. Furthermore, we work with you to determine a closing date that’s best for you, have no hidden costs, and pay typical closing costs.
Simply contact us to schedule a free, no-obligation consultation. Our Atlanta property specialist will tour your property and answer your questions. We can frequently give you an offer on the same day and close in a matter of weeks. Our satisfied sellers give us a high 95%* customer satisfaction rating and fantastic reviews because we provide solutions to house-selling problems, including with houses that have property tax liens. We’d be happy to talk with you and see how we might be able to help you sell your house fast.