Tax Liens vs. Foreclosure: Understanding Your Options and How LawmanRE Steps In
Tax Liens vs. Foreclosure:
Understanding Your Options and How LawmanRE Steps In
Tax liens and foreclosure are often confused—but they’re very different.
If you’re behind on property taxes, you want to understand what’s likely to happen—and how best to deal with it.
First, we need to understand the difference in the back tax collection processes employed by the various government entities. Whichever applies to your case, LawmanRE can help you formulate a plan for dealing with the consequences.
What Is a Tax Lien?
A tax lien is a legal claim against your home for unpaid property taxes. It doesn’t mean you’ve lost the home—yet. But it can lead to auction or foreclosure if not resolved.
Many states collect unpaid taxes by creating a lien against your property for the past due taxes and the collection costs associated with them and then selling the liens via an auction process. The property owner must make payments to the lien holder to pay-off the lien against their property. The state sets a rate of interest that the lien holder is allowed to charge the property owner. Failure to retire the debt can result in the lien holder eventually foreclosing on their loan and you losing your property. It will also complicate any attempt to sell your property.
What Is Foreclosure?
Foreclosure is the legal process where the lender or county takes back your property.
Texas is among the states that attempt to protect property owners by requiring taxing entities to file a lawsuit and secure a judgment in their favor before they can foreclose for back taxes. Once the lawsuit has run its course in the court, a judge will issue a final judgment. If they have found in favor of the taxing entities, they will usually set a date for the property to be auctioned for an amount that is not less than the back taxes then due. In Texas, those auctions are scheduled on the first Tuesday of a month. This is often the next step if a tax lien goes unpaid. There are redemption remedies available that vary from state to state, but those generally include substantial interest that must be paid along with reimbursing the purchaser of the property for the monies they paid at auction.
Why It Matters
A tax lien usually gives you a small window of time to act.
Foreclosure can be harder to reverse.
Either of the above events adds substantial costs for the affected property owner.
How LawmanRE Helps
We buy homes even with liens or that are scheduled for auction
We can relieve you of the tax debt
When you work with us, we take responsibility for resolving issues affecting your title
Don’t let confusion cost you your home. Know your rights. Know your options.
👉 Talk to Gary and his team at LawmanRE today—your free consultation could relieve a major source of your stress.
