Dealing with Tax Liens
Tax is a serious issue that can creep up on you without realizing it. When property tax isn't paid, it starts to rack up a balance plus interest, and eventually the Tax Man is going to come knockin'.
Similar to foreclosure, tax liens often result in the same process of property claims where you can eventually lose the home and have some damage done to your credit.
Rather than lose the property and all of its equity, you're faced with two options:
Paying The Lien
If you're able to pay the lien, then this is obviously an option to consider. But it's important to look at the pitfalls of doing so.
Depending on how you're going to pay the lien, if you're using your savings / emergency fund, borrowing the money, or pulling out a second mortgage to do it, it's important to review your future finances and evaluate if this is the best option for you now and for the future.
If going into debt is going to cause you more harm than good in the long-run, then it might be best to clean the slate.
Selling The House
The next best alternative may be to simply sell the house.
This allows you to get out from under the tax lien and not risk completely losing the property in a tax foreclosure, which would totally negate any equity that you've built in the property.
We would like to make an offer on your property, which may help put money in your pocket rather than going into debt or losing all equity you've earned.