Selling a house when you owe back property taxes
Unpaid property taxes grow with penalties and interest. Selling the property can allow the balance to be paid from the proceeds at closing.
How back taxes affect a sale
Delinquent property taxes are a lien on the property, so they have to be settled for a sale to close. In a typical sale, the title company requests the payoff amount and pays it from the proceeds, so you don't need to come up with the money in advance.
Check where you stand
- Request your current balance from the Sacramento County tax collector, including penalties and interest.
- Ask whether a payment plan is available. In some cases, it may let you keep the house.
- Find out how long the taxes have been unpaid, because the county's options change over time.
- Check for other liens, such as a mortgage, HOA dues, or judgments, because all of them come out of the proceeds.
When a quick sale makes sense
If you owe more than you can pay, the house needs work, or you want to avoid further penalties, a direct sale may let you settle the debt and keep what's left. If the taxes are manageable and the house is in good shape, a traditional listing can bring a higher price. We'll look at your numbers with you before suggesting anything.
Common questions
Can you buy a house with tax liens?
Often yes, as long as the proceeds are enough to pay them off at closing. The title company will confirm the exact amounts.
Do I need to pay the taxes before selling?
Usually not. The balance can typically be paid out of the sale proceeds through escrow.
Other situations
- Tired landlord
- Vacant house
- Liens and judgments
- Inherited a house
- House needs repairs
- Fire and water damage
- Behind on payments
- Code violations
- Unpermitted work
- Probate and estates
- Divorce