What to Know:
- When you inherit a property, any tax liens remain attached even after the owner’s death – and these can open you up to foreclosure after just 12 months.
- Tax liens come from unpaid property taxes and are legal claims that creditors (the county) use to secure repayment.
- Ignoring a tax lien can lead to legal consequences, like real estate foreclosure.
- Heir Solutions in Columbus offers beneficiaries a straightforward solution to sell properties with liens.
- Selling an inherited property with a lien may be the most practical option for heirs dealing with financial challenges.
What Happens If You Inherit a House with a Lien?
Inheriting a house with a lien just means there is money owed on the property. Your first step is acknowledging that the heir (you) will have to deal with this debt. It can’t be ignored. Often, the best way to stop having to make mortgage payments and paying taxes, etc, is for the heir to sell the house and pay off what is due on the lien.
What Happens to a Lien When the Lien Holder Dies?
Liens do not go away when the person who incurred the lien dies. In fact, if you receive a deceased person’s property that has a lien attached to it, the legal claim does not stop but stays with the property and becomes the new owner’s concern. That lien now belongs to the estate or the heirs of the person who held it. You will need to pay off the lien balance before you can sell or give the property to somebody else.
Understanding Tax Liens on Inherited Properties
Tax liens added to inherited homes are claims that the government makes because of unpaid property taxes. The government attaches these liens to the home itself and not to the person. This means the lien will still be there even if the originally-indebted owner has passed.
Unfortunately, you cannot leave this kind of lien unpaid. You will have to fix it before you can go ahead with selling, renting, or giving someone else the ownership of the property. Some ways people handle this are by paying off the lien, talking to creditors, or selling the home. When you know what the lien is about, we can help you navigate a solution.
Legal Consequences of Ignoring a Tax Lien
Ignoring a tax lien on inherited property is going to cause you massive legal problems like:
- Foreclosure: If you don’t pay these outstanding debts, you could lose the property to people who have a legal claim on it (after 12 months, these liens become forcibly collectable).
- Accruing More Debt: If you do not resolve liens, interest and penalties add up beyond the current total, making this even harder to get out of.
- Blocked Sales: You will not be able to sell the property if the lien is not paid off.
If you do not pay property taxes, lawsuits or collections become a real risk. Seeking professional guidance from a trusted source like Heir Solutions will help you identify next steps and know how to limit any new legal claims for outstanding debts on the inherited property.
Assessing the Lien Details, Validity, Probate Concerns
Before you figure out what to do about a lien, it can be wise to check if the claim is real – tax liens are typically accurate, but sometimes a mechanics lien will be placed on a property that is incorrect
Some tax liens show up because of a voluntary lien, for example, when you take out a mortgage. Others come from an involuntary lien, which happens if the government or a court is owed an unsettled (not current) debt by you/ this property.
When you see a voluntary lien, look over your records. Make sure the person who says you owe money really has a legal claim on your property. We can help you check past debts and compare what you find with the property’s details.
Can You Sell a House With Property Liens Against It?
If you feel overwhelmed by the financial strain of resolving a lien, selling the inherited property may be your best choice. Cash buyers like Heir Solutions can make the whole experience simple. They buy directly and deal with the lien for you.
This way, you do not have to go through negotiations with people you owe money to, or pay a lot for repairs. In some cases, you will receive a cash settlement for the estate. These buyers usually take care of property taxes and other outstanding debts too. They offer a simple solution to problems with inheritance and make selling an inherited property much less stressful.
Selling to Specialized Buyers like Heir Solutions
Selling your inherited property with a lien to buyers who focus in this area gives more than just financial relief. Companies like Heir Solutions in Columbus, help with the legal claim steps, perhaps mitigating the risk of the probate process, and helping you resolve this challenge.
Specialized buyers can purchase the home directly from you, and will even come to you and set up closing at a time (and place) that is convenient to you. That means you do not need to deal with the headaches that come with moving property to someone else, including realtor fees, showings, and so on.
You can sell your property and feel sure you made the right choice. The worry about unpaid property taxes or a home that needs more work just goes away. This lets you focus on your capital gains concerns, estate planning, and so on right now.
Selling to a Direct Buyer in Columbus
It’s also important to consider working with local experts. Heir Solutions is based in Columbus, Ohio. While we could serve anywhere in the United States, we choose to make Ohio our focus, learning the local laws, becoming true specialists in our field. This means we get to personally interact with heirs when necessary and when possible. We can see you personally, serve your family better, and move things more quickly in and out of court proceedings, if needed.
Then, when you reach out to companies like Heir Solutions to talk about your situation, we’ll help look at the specifics we can find in our local court system, the county records, and so forth; property taxes, any unpaid debts, and if there is a lien on the house.
After we go through these details, we’ll give you an offer based on what shape the property is in and how much you owe on the lien and, crucially, we’ll usually buy the property as-is, how it sits. So you avoid expenses for any necessary repairs.
Once you say yes, Heir Solutions take care of clearing the lien and buy your home. No realtor fees, no Zillow, no extra fees – just money. You and your family get money fast, and it gets rid of legal troubles tied to probate. Beneficiaries also avoid the problems that come with many regular home sales.
Your Inheritance Options As Executor (or not)
Inheriting a house that has a tax lien can be tough. But if you know your options, you can handle this problem in a better way. First, look at the lien’s details. Then, take the right steps to fix it. This can help you deal with the problem and avoid legal trouble. If you want to sell your inherited property, working with buyers like Heir Solutions is a good idea. They make things easy and give you a fair cash offer. You will not need to fix up the house or spend time on long talks. Remember, you do not have to do this alone. Getting help from people who know what to do will make things go more smoothly. If you have an inherited property with a tax lien, think about contacting Heir Solutions. They can show you the best way to take care of the lien and help you get cash fast.
Links:
https://www.empathy.com/property-assets/if-your-loved-ones-house-has-a-lien
https://www.state.nj.us/treasury/taxation/inheritance-estate/inheritance.shtml
https://www.lawdepot.com/resources/real-estate-articles/what-to-do-when-you-inherit-property/
https://smartasset.com/financial-advisor/inheriting-a-house
https://www.experian.com/blogs/ask-experian/what-to-do-when-you-inherit-a-house/
https://www.revenue.pa.gov/TaxTypes/InheritanceTax/Pages/default.aspx
