Selling a home with a tax lien in Kansas City can be difficult. The city has many rules and regulations as well as high taxes to adhere to. So if you are wondering how to sell your house with a tax lien in Kansas City, Missouri, this post will provide some helpful tips.
First, we’ll go over the process of selling a home that has an unpaid property tax lien on it. We’ll also cover what exactly a tax lien is and how not paying taxes can cause one to be put on your home. And we’ll talk about the option of selling your house in a tax lien and if it’s even possible.
Finally, we’ll share some important things to know about house sales taxes in Kansas City, Missouri.
So if you are considering selling your home, you’ll definitely want to read this blog post!
What Is a House in Lien
A tax lien is when the county places a hold on your property while pursuing unpaid taxes. You may not be able to sell or refinance your property while it’s under the tax lien. The county will try and collect their money before you go forward with any transactions on the home.
A tax lien is an encumbrance (claim) on your home or other assets. It can be released if you pay off what you owe in back taxes. However, if you don’t do anything about it, your home could be foreclosed on, and go up for sale at auction. The cost of having this happen to your property can be catastrophic because there are many costs associated with it, like paying for lawyers, court fees, and more.
A property is considered to be “in lien” by the city of Kansas City, MO, if it has unpaid real estate taxes for two consecutive years or more.
Besides property taxes liens, there are several other types of property liens, like:
- IRS liens
- Child-support liens
- Mechanics or materialmen’s liens
- Family law real property liens
So whether you didn’t pay your property taxes, back taxes, child support, or didn’t pay a contractor after a home improvement project, a lien can be placed on your home to collect what is owed.
What are Real Estate Taxes in Missouri
Property taxes vary from state to state and county to county based on various factors, including but not limited to: type of building (residential or commercial), age properties, assessed value, etc.
When you owe real estate taxes (or any other type of taxes), it can cause the government or creditor that is owed money to place a future claim against any assets that you own. This means that if you don’t pay what you owe by the due date, then there will be penalties attached to your account and an eventual foreclosure—and possible sale of all assets like cars, furniture, etc.
The negative effects can happen at home, too, because the Kansas City, MO, the government can place a lien on your property if you don’t pay your real estate taxes. And because back tax bills are so expensive, sometimes the only option is to sell it in order for them to be paid off and removed from public records.
If there is both state and city income tax owed, then this would get complicated quickly… And even more serious than that, after 90 days of non-payment, they will begin charging interest at an annual rate of 12%, which continues each year until all debts have been satisfied! It also costs $25 per quarter just to file paperwork, as well as another fee anytime debtors want something added or changed on their accounts—and these fees can add up quickly.
In some cases, the debts owed on the house end up being too much for it to be worth selling, and they are abandoned, which is when squatters start taking over… And unless someone comes along willing to pay off all back taxes in Kansas City, MO, then there isn’t really any way around them besides finding another option like bankruptcy or fighting the lien through tax court.
But the good news is there is another alternative, selling your house with a tax lien.
Can You Sell a House in Tax Lien in Missouri?
It is possible to sell a house with a tax lien in Missouri. Often, the county will offer some kind of discount to the buyer in order to get rid of the lien on the property. However, if you cannot secure a buyer who wants to buy your house with a tax lien, you may end up having to pay back taxes plus interest.
This is when working with one of the companies that buy houses in Missouri would be helpful. Unlike traditional buyers who are usually intimidated by liens against a property, a local home buyer is familiar with tax liens and buying a property with one.
By accepting a cash offer for your house and working with a local home buyer like KC Property Connection, you’ll be able to quickly sell your house as-is. The team at KC Property Connection knows how to handle buying a house with a tax lien and can work with you on finding a win-win solution.
Things to Know About House Selling Taxes in Kansas City
As you’ve learned, not paying your taxes can lead to having a lien on your home, which can ultimately interfere with selling your house. So it’s important to figure out how much you owe first before listing your property. If you are not sure how much you owe, you will need to contact the county or city where your property is located for information about real estate taxes.
Once you find out how much you owe and can afford to pay it off, you’ll want to resolve the outstanding amount so that the lien is no longer tied to the house.
Another option is to try selling your house with the lien and use the proceeds from the sale to pay off the outstanding taxes. However, the state of Missouri has specific rules and regulations that must be followed when selling a property with tax liens on it. So to meet those requirements speaking to a real estate attorney would be helpful.
Since some important things must be done prior to accepting an offer from any potential buyers
and a lien isn’t something you’ll be able to hide, you’ll want to be proactive in this particular situation in an effort to avoid a buyer backing out at the last minute. An attorney will provide you with advice and figure out what to put in writing so that the buyer won’t be liable for the outstanding taxes after taking ownership of the home.
If you’re not willing (or able) to pay off past due real estate taxes in order to get out from under lien, don’t worry; there are still options available!
How to Sell a House with Tax Lien
The easiest way to sell a house with a tax lien is to address the lien before selling the property. This will make it possible for you to sell the house without any issues. But to clear up a lien will require you to pay it off. This can be challenging if money is tight or you don’t have enough to cover the full amount.
As we mentioned earlier, you can use your proceeds from the home sale to pay off the lien; you’ll just need to make arrangements beforehand for that money to go directly towards paying off your taxes.
Unfortunately, some buyers don’t understand this process, and seeing a lien on a property may turn buyers away, which can be challenging if you need to “sell my house fast, Kansas City.”
So instead of selling to a traditional buyer, making home repairs, and dealing with months of uncertainty waiting for an offer, you can try selling a house without a realtor and work with a local home buyer instead.
KC Property Connection is a house buying company that offers cash for houses in Missouri and Kansas. They know how to handle unique selling situations, including tax liens, probate, foreclosure, bankruptcies, and many more. They also buy houses in as-is condition, so you don’t have to worry about making any repairs before selling your home. Lastly, since you can sell your house directly to them, there are no expensive realtor fees involved- which is a savings of several thousand dollars. If you’d like to learn more about KC Property Connection or how it works, visit their website for more information. They are also a BBB accredited business and have a 5-star Google review rating.
If you are looking to sell your house in Kansas City, MO, and have a tax lien on it, the best option is likely to take advantage of our home buying services. We will walk you through how we buy homes with liens so that you can be confident about knowing everything there is to know about selling your property. Contact us today to get started!