Before selling over tax debt, check whether your state will simply slow the debt down: all three states offer exemptions or payment plans that sometimes solve the problem outright. Selling is the right answer only when these fall short.
KEY FACTS FROM THIS GUIDE
- Liens are paid from the sale price at closing; you rarely pay out of pocket
- Texas penalties: 6% month one, up to 12% by July 1, plus interest and up to a 20% collection penalty (Tax Code 33.01, 33.07)
- Ohio and Georgia county treasurers offer payment plans that can stop the spiral
- The county payoff statement is public record; get it before negotiating anything
Ohio: homestead exemption and payment plans
Seniors (65+) and disabled homeowners can exempt a chunk of home value from taxation. Most county treasurers offer delinquency payment plans that stop the penalty spiral while you catch up. Call your county treasurer before assuming foreclosure is coming.
Texas: deferrals that stop the fire
Homeowners 65+ or disabled can defer property taxes entirely, the debt accrues at modest interest but no foreclosure while you live there. Anyone can request an installment agreement on homestead delinquencies. Given Texas penalty rates, these programs are worth a same-week phone call.
Every month adds penalties. A sale stops all of it at closing. Written numbers, licensed title company closings, zero pressure.
Georgia: homestead plus county programs
Georgia’s homestead exemptions reduce the taxable base, with larger senior exemptions in many counties including Fulton and DeKalb. Payment plans vary by county tax commissioner.
When selling beats the programs
If the debt is years deep, the house needs repairs you cannot fund, or the payment plan fails the household math, a sale converts the situation to cash before penalties eat the equity. The lien is paid at closing and the remainder is yours.
Get a free written cash offer here, or book a free consultation if you want to talk it through with a real person first.