Behind on property taxes
What unpaid property taxes lead to, the options that do not involve selling, and how a sale can pay the balance at closing.
Unpaid property taxes are a serious problem but they are rarely a sudden one. In both DC and Maryland there is a defined process, and it moves in stages rather than overnight.
The most important thing you can do is find out exactly where your property stands in that process, and by which date. Your county or district tax office can tell you, and that call is free.
What tends to be difficult
The balance grows on its own
Interest and penalties are added to an unpaid balance, which means the amount owed keeps moving while you decide what to do.
Tax liens can be sold to investors
Jurisdictions can sell the unpaid tax debt at a tax sale. That does not transfer your home immediately, but it starts a process with real deadlines attached.
It complicates a normal sale
Unpaid taxes attach to the property. Any sale has to resolve them, usually out of the proceeds at closing.
The letters are frightening and not always accurate
Tax debt attracts a lot of unsolicited mail. Some of it is from companies, not from the government. Read who actually sent it before you react.
Your options
Most of these do not involve selling to us, and several of them cost you nothing to explore.
Call the tax office and ask about a payment plan
Many jurisdictions will arrange instalments for an overdue balance. This is the first call to make, before anything else.
Check whether you qualify for relief
Homestead credits, senior and disability exemptions, and hardship programs exist in both DC and Maryland. You may owe less than the letter says.
Redeem the property
If the tax debt has already been sold, there is generally a period in which the owner can pay it off and keep the home. An attorney can tell you what your redemption rights are.
Refinance or borrow against equity
If you have equity and income, a lender may be able to clear the balance without a sale at all.
List the property
If the house is in good condition and there is time before any deadline, a traditional sale will usually net you more.
How a direct sale would work here
A sale can pay the outstanding taxes directly out of the proceeds at the closing table. You do not have to find the money first.
The title company searches for liens as part of closing, so everyone sees the real balance rather than an estimate.
If there is equity beyond what is owed, that equity is yours. We will show you the figures in writing.
We are not attorneys or tax advisors. Before acting on any tax notice, confirm the facts with your tax office and, if a deadline is involved, with an attorney.
Tell us about the property
No obligation, and nothing here commits you to selling.