Tax lien on house can I sell

[keithminn]

What is the name of your state? MN

I would like to sell my house -- it has a lien for state taxes. The equity in the house would pay a part of the lien but possibly not all of it. Would the remainder of the lien stay on the house -- if it did the potential owner would not want to complete the deal -- I know that I would remain responsible for the tax after any sale -- but if I can't sell the house I could loose all the equity to a foreclosure -- would'nt the state want to recoup some money by releasing the lien then allowing the foreclosure to wipe out the payment from my equity even if it was'nt the whole payment.

 

[keithminn]

Short of selling you the property

Can you go over the rules -- will the state work a deal or does the lien carry forward -- the equity will pay a large portion of the lien

 

[nextwife]

I have done many closings in which the lien exceeded the available equity. The title company closer will need to work with your contact at the taxing agency due the lien. What they normally do is agree to release the real estate from the lien in exchange for getting all the available equity. You will still owe the balance- but the real estate will be released from the lien in exchange for getting what is there to get.. Typically the closer will need to prepare a proforma closing statement and get it to the tax agency contact to review in advance.

An experienced closing office should know how to coordinate this.

 

[LdiJ]

I have done many closings in which the lien exceeded the available equity. The title company closer will need to work with your contact at the taxing agency due the lien. What they normally do is agree to release the real estate from the lien in exchange for getting all the available equity. You will still owe the balance- but the real estate will be released from the lien in exchange for getting what is there to get.. Typically the closer will need to prepare a proforma closing statement and get it to the tax agency contact to review in advance.

An experienced closing office should know how to coordinate this.

Thanks for lending your expertise to the tax forum Nextwife. That kind of experienced advice is invaluable!

 

[keithminn]

Thank you

Thank you -- you answer makes alot of sense