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Yes, You Can Sell – But There Are Steps to Take

The quick answer is yes, you can sell your house even if you owe back taxes in Texas. This tax debt won’t stop you from selling your house, but it does make things harder during the sale.

When you sell a house that owes taxes, the back taxes stick to the property. This means the debt stays with the house, not with you. But these tax debts must get paid before the house can go to a new owner with a clean title.

Key Point

In Texas, property tax debts get paid before most other debts, including mortgages. This means tax debt gets paid first from your sale money.

Property Back Taxes
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How Back Taxes Affect Selling Your House

When you owe property taxes, selling your house gets harder. The tax debt will show up when they check the title, and the buyer’s bank will want all debts cleared before closing.

Here’s what usually happens:

  • Back taxes get added up through the closing date
  • Late fees and extra charges get added to what you owe
  • The debt gets paid from your sale money at closing
  • Any leftover money goes to you after paying other debts

This is like other tough situations homeowners face, such as selling a house with structural issues, where being honest and handling things right are key for a good sale.

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Texas Property Tax Laws You Should Know

Texas has certain laws about property tax debt and sales. Knowing these can help you make smart choices about your situation.

Tax Debt Gets Paid First

In Texas, property tax debts have “super priority” status. This means they get paid before almost all other debts, including:

  • Mortgage debt
  • Home equity loans
  • Contractor debts
  • HOA dues

Your Right to Get Your Property Back

Even after tax foreclosure starts, Texas law gives you the right to “redeem” your property by paying all back taxes, late fees, and costs before the foreclosure is done.

Time Matters

Don’t wait too long to act. Texas counties can start foreclosure after taxes become late, though the timeline varies by county.

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Your Options When You Owe Tax Money

You have several choices when dealing with back taxes before or during a home sale:

Payment Plans

Most Texas counties offer payment plans for late taxes. This can buy you time to sell your home without facing quick foreclosure pressure.

Sell to Cash Buyers

Cash buyers, including real estate investment companies, often buy homes with tax debt. They can close fast and handle the problems of clearing debts. This might help if you’re thinking about selling your home at a loss to fix money problems.

Regular Sale

You can list your home the normal way, but you’ll need to tell potential buyers about the tax debt. The closing will take longer as debts are researched and cleared.

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Finding Out What You’ll Owe

Before selling, get a clear picture of your total tax debt. Contact your county tax office for a payoff statement that includes:

  • Main tax amount owed
  • Late fees (usually 6-12% per year)
  • Interest charges
  • Attorney fees if needed
  • Court costs if foreclosure has started

This total amount will be taken from your sale money, so knowing this number helps you understand how much money you’ll keep from the sale.

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Avoiding Scams and Protecting Yourself

Homeowners with money problems are often targets for scams. Watch out for:

  • Companies asking for money upfront to “talk” with tax authorities
  • Offers to transfer your deed to avoid foreclosure
  • Promises to pay your back taxes in exchange for signing over your property
  • “We buy houses” companies offering way below market value

Red Flag Warning

Never sign any papers transferring ownership of your property without talking to a lawyer first. Real buyers will give you time to review contracts and get legal advice.

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Next Steps: What to Do Now

If you’re dealing with back taxes and need to sell your home, take these steps:

  • Contact your county tax office right away to understand your debt and choices
  • Get a current property value to understand your potential equity
  • Think about talking to a real estate lawyer
  • Look into payment plan options with tax authorities
  • Get quotes from cash buyers and regular real estate agents

Remember, even in tough money situations, you have rights and choices. Just as there are ways to stop foreclosure in Texas, there are real paths forward when dealing with tax debt.

The key is acting fast and making smart choices. While selling a house with back taxes makes things more complex, it’s totally possible and often the best way to solve tax debt while keeping some of your home’s equity.