Tax Liens

What is a Real Estate Tax Lien?

A real estate tax lien is a claim placed on a property by the local government or taxing authority due to the homeowner's failure to pay property taxes. These liens are a legal means for the government to secure the unpaid property tax debt.

Risks of Real Estate Tax Liens:

Property Seizure: In extreme cases, if the property owner consistently fails to pay property taxes, the government may have the authority to seize and sell the property to recover the unpaid taxes.

Impact on Credit Score: A real estate tax lien can have a negative impact on the homeowner's credit score, making it challenging to obtain credit or favorable loan terms.

Difficulty Selling or Refinancing: Having a tax lien on a property can complicate the process of selling or refinancing the property until the lien is satisfied.

Accumulating Interest and Penalties: Unpaid property taxes typically accrue interest and penalties over time, increasing the overall amount owed by the homeowner.

Best Ways to Satisfy a Real Estate Tax Lien:

Pay the Outstanding Taxes:

The most direct method is to pay the outstanding property taxes, including any accrued interest and penalties. Contact the local tax assessor's office to obtain the exact amount owed.

Negotiate a Payment Plan:

Many taxing authorities are willing to work with homeowners to establish a payment plan. This allows the homeowner to pay off the tax debt in manageable installments.

Apply for Tax Abatement or Relief Programs:

Some jurisdictions offer tax abatement or relief programs for qualified homeowners facing financial hardship. Check with local authorities to determine if you are eligible for any such programs.

Dispute Incorrect Assessments:

If you believe that the property has been incorrectly assessed or if there are errors in the tax calculation, you have the right to dispute the assessment. Provide documentation supporting your case to the tax assessor's office.

Seek Legal and Professional Advice:

Consulting with a tax professional or attorney specializing in tax matters can provide valuable insights into your specific situation. a good alternative to an expensive service is to consult with Brownstone consulting, we can guide you through the resolution process and explore potential options.

Request a Lien Release:

Once the tax debt is fully paid, request a lien release from the taxing authority. This document is crucial for clearing the title and confirming that the tax lien has been satisfied.

Sell The Property

Selling the property to satisfy the lien could be the right decision in case you are about to lose the property and the debt is growing faster than the equity.

It's essential for homeowners facing real estate tax lien to address the issue promptly and proactively. Ignoring tax liens can lead to more severe consequences, including the potential loss of the property. Open communication with the taxing authority and taking steps to resolve the debt are key in mitigating the risks associated with real estate tax liens. Brownstone Consulting Could help in this matter simply contact us to discuss the options that are available for you.