Facing property tax delinquency on your Lakewood home creates a stressful situation that can feel impossible to escape. As interest and penalties accumulate, the path to selling your property becomes increasingly complicated. Many homeowners don’t realize they have options beyond paying everything off before selling – options that could help them move forward much faster than they thought possible.
The Challenge of Back Taxes on Lakewood Properties
Jefferson County treats property tax delinquency seriously, and the consequences can significantly impact your ability to sell. When you fall behind on property taxes in Lakewood, the county places a tax lien on your property. This lien takes priority over almost all other claims against your home, including your mortgage.
Many Lakewood homeowners mistakenly believe they cannot sell their property until all back taxes are paid. Others worry the government will seize their home immediately. The reality is more nuanced – you can sell a property with tax debt, but the process differs from a standard sale.
Tax liens create complications that scare away many traditional buyers and can significantly extend your selling timeline. However, with the right approach and understanding, you can navigate these challenges and still achieve a successful sale.
Understanding Property Tax Debt in Lakewood
Colorado’s property tax process follows a specific timeline. Property taxes in Jefferson County are due annually, with payments typically split between February and June. After payments become delinquent, the county begins charging interest at a rate of 1% per month.
If taxes remain unpaid, Jefferson County may sell the tax lien certificate at auction, typically in November. This doesn’t mean you’ve lost your home – it means an investor has paid your tax bill in exchange for collecting interest from you. You’ll now owe this third party rather than the county directly.
The most serious consequence comes if taxes remain unpaid for three years, at which point the tax lien holder can apply for a deed to your property through foreclosure proceedings. This timeline means most homeowners have options before losing their property entirely.
To determine your actual tax liability, request a current payoff statement from the Jefferson County Treasurer’s Office or the lien holder if your lien was sold at auction. The final amount will include the original tax amount plus accumulated interest and fees.
Traditional Sale Challenges with Tax Liens
Selling a Lakewood home with tax liens through traditional methods presents several obstacles. Title companies cannot issue clean title insurance while tax liens exist, and most mortgage lenders won’t approve financing for buyers until these liens are resolved.
During a conventional sale, tax liens must be satisfied at closing from your proceeds. This typically requires specific coordination with the title company and lienholders to ensure proper payoff and lien release. If your tax debt exceeds your equity, a traditional sale may not be possible without bringing additional funds to closing.
These complications often extend the selling timeline by 30 to 60 days compared to lien-free properties. Meanwhile, interest and penalties continue accumulating, potentially eroding your remaining equity.
Options for Lakewood Homeowners with Tax Debt
Despite these challenges, several paths remain available:
You can attempt to negotiate a payment plan with the county or lienholder, allowing you to make smaller payments while preparing to sell your property. While this prevents further penalties, it does not remove the lien until the amount is fully paid.
A traditional sale remains possible if you have sufficient equity to pay all tax debts from your proceeds. Your real estate agent will need experience handling tax-encumbered properties and must coordinate closely with the title company.
In cases of extreme financial hardship, bankruptcy might help by temporarily halting collection activities and potentially discharging certain types of tax debt. However, property tax liens generally survive bankruptcy and must still be addressed.
For many Lakewood homeowners, selling directly to a cash buyer who specializes in tax-complicated properties offers the simplest solution. Companies like The Atlas Portfolio purchase properties with existing tax liens, handling the complexity for you.
The Atlas Portfolio Solution for Tax-Encumbered Properties
At The Atlas Portfolio, we’ve developed a streamlined process for purchasing Lakewood homes with back taxes. We buy properties with existing tax liens, often closing in as little as 7-14 days, regardless of your tax situation.
Our approach eliminates typical roadblocks:
- We don’t require traditional financing, so lender concerns about tax liens don’t apply
- Our title company partners specialize in tax-encumbered properties
- We calculate fair offers that account for the tax situation while still providing you with cash from the sale
- We handle all negotiations with tax authorities after the purchase
This process enables you to move forward quickly, without spending months resolving tax issues before selling. While tax debts will be settled from your proceeds, you avoid the ongoing interest accumulation and stress of managing the process yourself.
Taking Action – Next Steps
If you’re ready to explore selling your Lakewood home despite back taxes, start by gathering information about your specific situation. Request a current payoff statement from the Jefferson County Treasurer’s Office to understand your exact liability.
Then contact The Atlas Portfolio for a free, no-obligation consultation. Our team will evaluate your property and tax situation, clearly explaining all your options. We’ll provide a fair cash offer that takes into account your tax debt while maximizing your return.
If you choose to accept, we can typically close within 7-14 days, regardless of the complexity of your tax situation. You’ll walk away with any remaining equity after tax obligations are satisfied, free from the stress of mounting tax debt.
Don’t let back taxes hold you back from selling the property you need to sell. Contact The Atlas Portfolio today to discover how our process can help you move forward despite these challenges.
