Updated: Jan 26
Paying property taxes on time can be a big headache here in Fort Worth especially with taxes going up. You cannot wish away this responsibility as a lien is placed on your home by local municipal authorities when you fall behind your property taxes. The office of the local county clerk files this lien and a notice to this effect is pasted on your house. In fact, the Tarrant county gets a claim on your property and you cannot sell it until you have paid the due tax amount.
Owing back taxes here in Fort Worth can have serious repercussions for you as a tax lien is placed on you. Also, it affects your credit score and shows as a red mark on your credit report. It hampers your ability to secure a loan or a mortgage from a lender also.
If you try to sell your house with a lien without informing the buyer about it, a simple title search will reveal this fact and it will leave you red faced. No buyer shows interest in your house in Dallas if your house has a tax lien. At the same time, you cannot hide this fact from the buyer when the stage to close the deal finally arrives.
If you think you cannot pay the whole amount of unpaid tax in one go, you have the option of talking to the office of the county clerk and requesting him to allow you to make payment in installments. This way you can pay back your outstanding lien in monthly installments and avoid any further penalties that may be slapped on you by the office of the county clerk.
However, if you are facing a financial emergency because of a loss of job or bankruptcy in your business, you know that it may not be possible to pay your taxes. However, just because you cannot pay your back taxes does not mean you cannot sell your home in Texas.
The best way to clear tax lien is to sell your house. However, this is possible only if the value of your property is higher than the sum of the encumbered mortgage and the tax lien. If you are carrying a mortgage with an outstanding loan amount of $100000 and you also have a tax lien of $10000, the sale of your house is possible only if its value exceeds $110000.
Of course, you must have the money to cover all other costs of selling your home that include all the closing costs as well as cost to repair the home before putting it on the market. If you are going through a lean financial phase and cannot bear all these expenses, selling your house to a cash home buyer in Texas is a prudent idea. Check out the offer made by the cash home buyer and see whether this money covers all your tax liens and outstanding amount to your lender. Cash house buyer will take care of your tax lien and also pay the outstanding amount to your lender. You can pocket the excess amount of money and move out proudly as a homeowner.