In case you are a homeowner and you have not been able to pay the property taxes in Indianapolis or other municipal charges such as a sewer or water bill, you could potentially lose your house to a tax sale.
What exactly is a lien?
A tax lien is a legal claim against your property as a result of failure to pay income taxes or other taxes. The claim ties up your house as a way to collect money that you owe. The effect of this lien is that your home can’t be sold until the property tax bill is paid.
There are different types of liens you might encounter.
Consensual liens – include liens you agree to when you purchase something. These types of liens are created when you agree to give a lender, such as a mortgage lender, an interest in your property to serve as security for a loan.
Statutory or non-consensual liens is an interest in your property obtained by someone through a court process that is granted in order to secure a debt you owe. The most common statutory liens are IRS liens, delinquent property taxes, vendor contract liens or judgment liens.
Indianapolis property tax liens
All states have statutes that allow counties to place a lien on a property with delinquent property taxes. Under most state laws, a property tax lien usually has priority over all other liens, including mortgages, no matter if the mortgage was recorded before or after the tax lien.
Each state has its own laws for tax sales. Most of the time, the taxing authority does not have to go to court before holding a tax sale. The process usually begins when the taxing authority files a list of delinquent taxes with the recorder’s office and publishes a copy in the newspaper.
Once the property taxes are delinquent for a sufficiently long time, the taxing authority will schedule your house for a tax sale, which is similar to a foreclosure.
Property taxes are usually paid through an escrow account established by the mortgage lender. Homeowners whose mortgages have just paid off usually forget to pay their real estate taxes that are due once a year as the bank had been responsible for paying the taxes for many years.
Owing taxes to the IRS or to State taxation authorities can be very stressful and failure to take action to resolve the problem will only worsen the situation. Even when a tax sale for your property is imminent, there are options available to you to save your property.
Even if the taxing authority doesn’t force the sale of your Indianapolis house, selling your property to a buyer on your own requires conveying a clear title. You will not be able to sell your property through the normal route if there’s any type of lien clouding the title.
Probably, in this case, your best option would be selling your Indianapolis property to a cash home buyer. Christopher Ellyn Homes can offer you various payment methods such as cash or even the assumption of your existing tax liens and/or mortgage payments.
One of the biggest advantages to a cash offer is that it is more secure than a transaction that needs financing. By opting for a cash sale you can sell your Indianapolis house quickly and get money for your property in as little as 3 days.
Don’t let this situation haunt you, to sell your Indianapolis property fast, you can call us at 317-782-5481 or simply fill out our form. Click here to find out more…