How to Sell a House With Back Taxes or Liens

Selling a house with back taxes or liens can feel overwhelming, but it’s more common than you think—and definitely possible. In the Dallas-Fort Worth area and throughout Texas, many homeowners face this situation and still walk away with cash. Here's how to do it the smart way.

What Are Liens and Back Taxes?

• Liens are legal claims against your property due to unpaid debts—often from contractors, judgments, or the IRS.

• Back taxes refer to unpaid property taxes owed to the county or city.

These debts must be addressed before or during the sale, as they legally “cloud” the title.

Step 1: Find Out What’s Owed

Request a title search through a title company or attorney. This will show exactly how much you owe and to whom. This is essential to prepare for closing.

Step 2: Disclose the Liens to Your Buyer

Honesty is key. Most buyers—especially cash investors—expect title issues and are prepared to work with you if you’re upfront.

Step 3: Sell to a Cash Buyer Who Understands Liens

A traditional buyer using a mortgage may walk away. But local investors in Dallas, Fort Worth, and surrounding areas often specialize in properties with back taxes or liens and can:

• Pay off the liens at closing

• Buy the house as-is

• Close quickly, even within 7 days

Step 4: Use the Sale Proceeds to Clear the Debts

In many cases, the liens or taxes are paid out of your equity at closing. If your house is worth more than what you owe, you can still walk away with cash.

Final Tip:

Don’t let back taxes or liens stop you from selling. The sooner you act, the more equity you can preserve. A local investor may be the fastest path forward.