A tax lien is a common way for creditors to collect when you’ve failed to pay back your debt. They’ll put a notice on your property saying that you owe money, making it difficult to sell your house fast in Nevada. You must have a clear title when you sell your home, and having a lien on your home makes it unclear.
Creditors realize that putting a lien on a property is a cheap and easy way to recoup some of their losses. One day, you’ll need to get out from under the lien, which means the creditors will get back their money. But what happens when you need to sell your property and you don’t have the money to pay off the lien?
Options to Pay Off a Tax Lien
Refinancing or selling your home through a traditional real estate listing probably won’t be possible unless you pay off the lien. But you do have other options you can look into. Here are a few examples:
Pay off the lien.
While you may not want to hear this one, it’s sometimes best to pay off the lien. You can set a budget for how much you can afford to put away each month and slowly pay down the lien. The sooner you do this, the less penalties and interests you’ll end up owing. By speaking with an attorney, you may be able to reduce the amount you owe.
Use your home equity.
If you have equity in your home, you can refinance and the government may be willing to subordinate the lien. Subordination allows other creditors to come before the IRS, though it does not remove the lien. The problem with this scenario is that having a lien makes it difficult to refinance.
You can also sell your house, and with enough equity, the IRS may discharge the lien. This allows the title to be transferred to the new owners free and clear. Unfortunately, it’s difficult to sell a home this way when there’s a lien.
Get a tax loan.
Another option is to get a tax loan. We usually don’t recommend this option because you’re simply replacing your debt with more debt. But, if you’re in serious need of paying off the lien to keep your house, it’s something worth thinking about.
We Buy Houses in Las Vegas – Even those with Tax Liens!
As you can see, paying off the lien is the best option when you plan to sell your home with a traditional listing. If you’re not in a position to do this, contact We Buy Any Vegas House today. By selling your home as-is, one of our knowledgeable Las Vegas home buyers will provide you with a big enough offer to cover the property and the lien. Contact us today to learn more about our process and how to get your free cash offer.