Someone bought a tax lien on your home. What happens now?

What happened?

Your county sold someone a lien against your home. A lien is a debt tied to the property. It usually comes from unpaid property taxes, but it can also include unpaid water bills or other local fees. Sometimes a bill gets missed and sometimes money is just too tight to pay right away. We understand.

Keep in mind, right now the investor only has a lien, and you can still save your house. The law calls this “redeeming” the property. In most cases, the lawyers must send letters before filing a court case to take your property.

Save all your tax-sale papers.

Keep the notice and envelope, along with any bills, court papers, payoff letters, and messages about the lien or your property. If you want help understanding something you received, we can review it with you.

The law allows the lawyer to charge certain fees before you can go and pay the county the taxes. The amount you owe may go up. If a fee looks wrong, too high, or unclear, we can help you review it.

Get the current payoff.

We can help you get a current payoff. If you’d rather handle it yourself, contact the investor or the investor’s lawyer named in the notice, or call the tax collector for the county. Ask if the lien is still open, how to get a current written payoff, and how to pay it. Your old tax bill may not show the full amount.

What can you do?

Once you know the amount you owe, you can consider your options. You may be able to pay off the lien and keep your property. If you need money, a loan may help. If you cannot keep the property, selling it before foreclosure may let you recover some of its value.