Common types of liens
- Mortgage or deed of trust
- Property tax liens for unpaid county taxes
- Judgment liens from lawsuits
- Mechanic's or construction liens from unpaid contractors
- Federal or state tax liens
- HOA liens for unpaid dues
- Child support liens
Back taxes and tax sales in Mississippi
When property taxes go unpaid in Mississippi, the county can sell the tax lien at an annual tax sale. The owner generally has two years from the sale to redeem the property by paying the taxes, interest and costs. If it isn't redeemed, the buyer of the tax lien can end up with title.
If you're behind on property taxes, selling before that redemption window closes can protect your equity.
How liens are paid when you sell
The title company searches the property, lists every lien and requests payoff amounts. At closing, the liens are paid from the sale proceeds in order of priority, and you receive what's left. Releases are then recorded so the buyer gets clear title.
When liens add up to more than the house is worth
If the liens are larger than your equity, you may need to negotiate. Lenders can approve a short sale, and other lienholders sometimes accept reduced payoffs. An attorney can advise on what's possible.
Why investors are often a good fit
Some retail buyers walk away from title problems. Investors who see liens regularly will often stay in the deal and work with the title company, which can make the difference between selling and not.
Why work with a licensed agent who is also an investor
Most sellers have to pick a side: call a cash buyer and hope the offer is fair, or call a realtor and wait for a retail buyer. Travis can do both, and he'll show you the numbers for each before you decide.
- He invests himself. Travis can make a direct cash offer on some homes, as a principal, with his license status disclosed.
- He knows other investors. If a home isn't a fit for him, he can bring it to local buyers he already works with, so you can compare more than one offer.
- He finds investors on the MLS. As a licensed agent, he can list the home where agents and their investor clients look every day, which can bring more competition than a single "we buy houses" call.
- He's licensed in Mississippi. That means written agreements, clear disclosures and a duty to deal honestly with you.
Frequently asked questions
Can I sell a house with liens on it?+
Yes. Liens are usually paid from the sale proceeds at closing so the buyer gets clear title.
How long do I have to redeem my property after a Mississippi tax sale?+
Generally two years from the tax sale, by paying the taxes, interest and costs. Check with the chancery clerk for exact amounts.
Who pays the liens when I sell?+
They're paid from your sale proceeds by the title company. You receive whatever is left after liens and closing costs.
What if my liens are more than the house is worth?+
You may need to negotiate reduced payoffs or a short sale with your lender. An attorney can help.
Can I sell a house with an IRS lien?+
Often, yes. The IRS has a process for releasing its lien so a sale can close, usually with the lien paid from proceeds. Start early, as it takes time.
Will a cash buyer buy a house with back taxes?+
Many will. Investors are used to paying back taxes and liens at closing.
Talk it through with Travis
No pressure. He'll show you a cash option and a listing option side by side, so you can choose.
Related guides
This guide is general information, not legal or tax advice. Talk with an attorney or tax professional about your situation. Travis DeLoach is a licensed real estate agent in Mississippi (MS License # S62442) with Luxury Southern Realty. When we or our partners purchase a property directly, we do so as principals and disclose our license status.