How to Sell a House With Tax Liens in Missouri

Unpaid property taxes create liens that must be resolved before or at closing. Here's how to navigate a tax lien sale in Missouri.

Property tax liens are one of the most common issues that complicate home sales in Missouri. When property taxes go unpaid, the county places a lien on the property. This lien must be satisfied before or at closing — but that doesn't mean you can't sell.

How Property Tax Liens Work in Missouri

In Missouri, unpaid property taxes become a lien on the property on January 1 of the year following the tax year. If taxes remain unpaid for three years, the county can sell a tax certificate at auction. If the certificate isn't redeemed within a certain period, the county can pursue a tax deed, which would transfer ownership away from you.

Can You Sell a House With a Tax Lien

Yes. You can sell a house with a tax lien as long as there is enough equity to pay off the lien at closing. The title company will handle paying off the lien from the sale proceeds. If the lien exceeds the property's value, you may need to negotiate with the county or consider other options.

What About IRS Tax Liens

Federal tax liens (IRS liens) are more complicated than property tax liens. An IRS lien attaches to all of your property, not just the real estate. To sell a property with an IRS lien, you typically need to either pay off the lien, negotiate a discharge of the lien for the specific property, or arrange for the lien to be paid from the sale proceeds.

How We Handle Tax Liens

At Midwest Equity Advisors, we regularly buy properties with tax liens. We work with title companies experienced in lien resolution and can often close quickly even when tax liens are present. We'll give you a clear picture of what you'll net after all liens are paid.