Can I sell my house with a tax lien in Connecticut?

Real Quick, What Are Tax Liens?

Tax liens allow the IRS to legally claim against the assets of an individual or business that fails to pay taxes on time. When a tax lien is filed, it makes any title efforts on real estate property null. Essentially, if you have a property with a pending lien, you are not the owner until the dispute is resolved or the delinquent property taxes (or delinquent taxes) are paid off.

How Do Tax Liens Work?

1. The IRS files a lien against your property.

2. They will send you a notice indicating the amount owed, its due date, and your rights to claim any exemptions (like homestead).

3. If you fail to pay the tax on time, they can seize your property and sell it at public auction.

4. You are given a chance to file a complaint or appeal, but if you miss that window, they can legally sell your property.

5. If your home is sold at auction and doesn't cover the lien amount, you are responsible for paying the balance.

What is The Tax Sale Process in Connecticut?

In Connecticut, a tax lien can be removed from the title of your property if you have paid all taxes owed and liens to that particular local government.



To remove it from the title, you need to file an application with the town clerk's office in which the property is located. You will need to provide proof of payment for all back taxes and liens, as well as any interest or penalties assessed by law.

If this has been done, then a certificate should be issued by the town's clerk showing that no further action needs to take place because this tax lien has been satisfied. You can also get legal advice for a law firm that specializes in this area of real estate.

What You Need to Know Before Selling a House With a Tax Lien

If you have a house that is encumbered by a tax lien, think carefully before selling it. Not only will the lien need to be removed from the title, but there may be other liens on the property as well. These could include mechanics liens for work done to the house or local property taxes that have not been paid.

A tax collector in Connecticut can also foreclose on a home after waiting 90 days after the tax lien is filed. The tax lien fees need to be paid to get the lien removed. And if you do not remove it, it will harm your credit rating until it is resolved.

A Connecticut tax lien can also affect an insurance policy because the homeowner's interest in the property has been diminished by having a tax lien filed against it.

How does Connecticut Tax Foreclosure Works?

Under Connecticut law, you will get three notices before your property is turned over to the state. The first notice will arrive at your door in less than 12 weeks from the date of recording. The second will arrive within 18 weeks from your property is recorded, and the third warning comes about two weeks before the sale. This happens if you have unpaid taxes.



If you are in a situation where the fair market value of your home is less than what's owed on it, including tax liens and other encumbrances such as foreclosures or short sales - then there may be an option for debt relief.

Tips For Homeowners Looking to Sell Their Property

Now that you know what you need to do to remove a tax lien from your property, here are tips for homeowners that want to move forward with selling their house:

1. Make sure that your property is in good shape. This includes everything from the landscaping to the roof and foundation. It would be best if you attracted buyers with a strong offer, not lousy appeal.

2. Do not take on debt to finance repairs, renovations, or improvements to your house. This will only hurt you in the long run. You want to have a fair price for your home that allows buyers to pay off what it owes without having them go into debt themselves.



3. If you are selling your house with a real estate agent, find one who has experience selling properties with tax liens.

Can You Buy Tax Liens in Connecticut?

Yes, you can buy tax liens in Connecticut. Since tax liens offer a high return, low-risk investment opportunity, this type of investment is very popular.



As a buyer, you can choose which properties to purchase by reviewing the statutes on Connecticut tax lien certificates.

Can Someone Take Your Property By Paying The Taxes?

No, if someone else pays the taxes for you, they cannot take your property. However, you are still the property owner and must follow all exemptions and procedures under Connecticut law.

Final Verdict

If you're considering selling your house with a tax lien, take the time to understand all the steps involved in this process. We have outlined the Connecticut Tax Sale Process above and included some information on what you need to know before signing anything. Don't make any decisions without reading up!

We hope you found this article helpful!

Some Popular Cities In Connecticut We Buy Houses in:

  Stamford, Waterbury, Norwalk, Bridgeport, Hartford, Danbury , New Haven, Fairfield, Stratford, Norwich, New London, Groton, Manchester, New Britain, Meriden and Many More