Back Taxes Don't Disqualify You From Selling | They Just Need to Be Addressed at Closing
Owing back property taxes feels like a bigger problem than it usually turns out to be, mainly because most homeowners assume it has to be paid off before they can even think about selling. In reality, unpaid property taxes are almost always resolved as part of the closing process, the same way an unpaid mortgage balance is.
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Here's what actually happens in Tennessee if taxes go unpaid long enough: the county eventually files a delinquent tax lawsuit, and if it isn't resolved, the property is sold at a public tax sale to satisfy the debt.
Nashville, Rutherford County, and most other Middle Tennessee counties hold these sales annually, and once a sale happens, the former owner has a one-year redemption period to reclaim the property, but doing so means repaying the purchase price plus interest, on top of everything already owed.
If your mortgage isn't escrowed for taxes, your lender may also step in and pay the delinquent amount on your behalf, then add it to your loan balance.
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Selling before any of that happens is usually the cleanest way out. When you sell to Blue Shield Home Buyers, the back taxes, along with any interest and penalties, are paid directly out of the sale proceeds at closing, the same way a mortgage payoff works.
Common Back Property Tax Situations We Help With
These are the situations we see most often from homeowners across Davidson, Wilson, Rutherford, Sumner, and Montgomery counties.
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A few years of taxes have piled up — Whether it started with one missed payment or has grown for a few years, the debt is addressed at closing either way.
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A delinquent tax lawsuit has already been filed — The county has started the legal process. Selling before it reaches a tax sale is almost always the better outcome.
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Inherited a property with back taxes already owed — A common surprise for heirs. We can work through this as part of the sale.
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Lender paid your taxes and added it to your mortgage balance — A mortgage servicer stepping in to cover delinquent taxes often makes an already tight monthly payment worse. Selling can resolve both at once.
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Rental property with tenant income no longer covering expenses — Back taxes on an investment property that's stopped cash-flowing.
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Vacant or inherited property nobody has been actively managing — Taxes go unpaid simply because no one has been paying attention to the property.
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You're worried a tax sale date is approaching — If you've received notice of an upcoming sale, time matters. Reach out as soon as possible.
Frequently Asked Questions
Do I have to pay off my back taxes before I can sell the house?
No. Back property taxes, along with any accrued interest and penalties, are typically paid directly out of the sale proceeds at closing, the same way an existing mortgage balance is handled. You don't need to come up with that money out of pocket before selling.
How close to a tax sale can you still help?
It depends on where the process stands. Once a delinquent tax lawsuit has been filed, and especially once a sale date has been set, time becomes critical. Reach out as soon as you're aware of the situation. In many cases we can still close before a scheduled sale, but the earlier you contact us, the more options remain available.
My lender paid my back taxes and added it to my loan. Does that complicate things?
Not significantly. That amount simply becomes part of your total mortgage payoff, which is calculated and paid the same way at closing. Let us know this is part of your situation so we can request an accurate payoff figure from your lender ahead of time.
What if my property has already been sold at a tax sale?
Tennessee law generally provides a one-year redemption period after a tax sale, during which the former owner can reclaim the property by repaying the purchase price plus interest. If you're in this window, talk to a Tennessee attorney about your redemption rights as soon as possible, and reach out to us as well, since timing and next steps depend heavily on where things currently stand.
Areas We Buy Houses As-Is
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Nashville
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Murfreesboro
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Clarksville
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Smyrna
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Lebanon
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Gallatin
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Hendersonville
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Mt. Juliet
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LaVergne
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Portland
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Spring Hill
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Goodlettsville
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Joelton
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Madison
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Hermitage
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Old Hickory
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White House
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Greenbrier
...and surrounding communities in counties across Middle Tennessee including Davidson, Wilson, Rutherford, Sumner, Montgomery, and Maury.
Don't wait for a tax sale notice to act.
Get a fair, no-obligation cash offer. Back taxes paid directly at closing.