You’ve found the perfect home—it’s in a good location close to your work and has the quality of life you’ve dreamed of. Unfortunately, it has a tax lien on it and you’re worried that you may not be able to buy it. Not to mention, the concern you have about the unpaid taxes the previous owner left on it.
A tax lien means that the owner of the home didn’t pay a tax on it, so the government has a right to it until the debt is paid off. The good news is, you can buy a home with a tax lien on it, but it depends on if you’re paying with cash or you need a loan to purchase the home. Either way, it comes with significant risk, so proceed with caution.
If you are paying for the home with cash then there is nothing stopping you from buying a home with a tax lien on it. You have buying power and you don’t have to worry about getting a loan.
Just remember, when you buy the home:
If the unpaid taxes don’t get paid, it doesn’t matter if the home is yours or not. The government entity that has interest in the home can still foreclose on it to get the money that it’s owed, forcing you to move out.
However, if you need a Kansas City home loan to purchase the home, chances are you won’t be able to buy it. When it comes to payment, a loan needs to come first and when there’s a tax lien on the home, the loan becomes secondary to it. Thus, lenders don’t want to run the risk of the loan being neglected. Someone will have to pay the unpaid taxes before you will be able to get a loan on the property.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
