Got Tax Liens?
Liens are a pain in the you-know-what. And no one likes to deal with taxes. It can be annoying and embarrassing to see your name in the newspaper and know you have a limited amount of time to pay your tax bill.
So what exactly is a tax lien?
A tax lien is a lien imposed by law upon a property to secure the payment of taxes. A tax lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes. If you fail to keep current on your property taxes or other municipal charges, like a sewer or water bill, the past-due amount becomes a lien on your home. All states have laws that allow the local government to then sell your home through a tax lien process to collect the delinquent taxes.
How Does Property Tax Sales Work?
Each state has different laws for tax sales. Usually the taxing “authority” is the county. The county doesn’t have to go to court before holding a tax sale. Instead, the process is often started when the taxing authority files a list of delinquent taxes, which includes information about the taxpayer, the property, and the amount due, with the recorder’s office. Then they will publish a copy of this information in the local newspaper. Also, the homeowner typically is entitled to some form of notice of the pending tax sale via mail.
How Do You Save Your Home?
Even after your property goes to a tax sale, you might have options available to save the home. Most jurisdictions that sell tax deeds offer a right of redemption after the sale, which allows you to get your home back. To redeem, you must reimburse the purchaser the amount paid at the sale, or pay the taxes owed, plus interest within a specific time frame called a “redemption period,” which is generally between one to three years. Sometimes, the redemption period takes place before the sale. If you pay the delinquent taxes before the start of the sale, the sale will not take place.
How to Save Your Home After a Tax Lien Sale
After a tax lien sale, you still own the home because the purchaser only buys a lien against your property. If you pay off the amount of the lien, plus interest, within a specified time period you get to keep the home. This, too, is referred to as “redeeming” the home.
We can help in either of the above scenarios. We can save your property from going to a tax lien sale and we can even flip the sale after the fact. Reach out to us today to find out more!
Click on the video below to learn how The Charleston House Guy can help you solve your tax liens problem!
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