How to Buy a Home That Has a Tax Lien

A tax lien on a home can complicate the buying process but is not always a deal-breaker. Property tax delinquencies average 5.4% among non-escrowed mortgages. Tax liens arise from unpaid property or federal taxes and must be resolved for the sale to proceed. Buyers should ensure timely title work to identify lien details, settlement options, and seller equity to address the lien at closing.