Property Tax Liens and Home Equity Options
Unpaid property taxes can result in additional penalties, property tax liens, and complications involving property ownership or future real estate transactions. Homeowners evaluating their options may consider payment arrangements, property tax loans, refinancing, or other alternatives, depending on their circumstances and applicable state laws.
Understanding how property tax liens work and what options may be available can help homeowners make informed decisions about their property and financial future.
Property Tax Liens and Home Equity Options
Unpaid property taxes can result in additional penalties, property tax liens, and complications involving property ownership or future real estate transactions. Homeowners evaluating their options may consider payment arrangements, property tax loans, refinancing, or other alternatives, depending on their circumstances and applicable state laws.
Understanding how property tax liens work and what options may be available can help homeowners make informed decisions about their property and financial future.
What Is A Property Tax Lien?
A property tax lien is a legal claim against a property associated with unpaid property taxes. Depending on applicable state and local laws, unpaid taxes may result in interest, penalties, collection actions, tax sales, or other consequences affecting the property.
Property tax liens can also complicate the sale or transfer of real estate because outstanding obligations may need to be satisfied or otherwise resolved as part of the transaction.
The procedures for property tax collection, tax sales, redemption periods, and payment arrangements vary by jurisdiction. Homeowners should contact their local taxing authority or a qualified professional to understand the requirements and deadlines that apply to their property.
Buy Before You Sell
Need access to your home’s equity before selling? Our program can help create greater flexibility for your next move.
Alternative to Home Refinancing
If traditional refinancing is not available, a residential sale-leaseback may provide another way to access your home’s equity.
Property Tax Liens
Property tax obligations can create financial pressure. Accessing your home’s equity may provide another option for qualified homeowners.
Managing Financial Challenges
Financial challenges can make traditional financing difficult. A residential sale-leaseback may provide another way for qualified homeowners to access their home equity.
How the Residential Sale-Leaseback Program Works
SKYDAN™ is here to help you tap into your home’s equity to free up any tied up funds.
Qualify
Eligibility is based on property equity and other program requirements, rather than traditional loan approval.
Home Visit
After initial qualification, we will schedule a time to visit your property within 1-3 days.
Appraisal
Within 3-5 days, we determine how much cash you will receive, based on your property’s value.
Payment
Within 30 days or less, you will receive the agreed-upon amount of money.
What Options May Be Available to Homeowners?
Depending on their circumstances and applicable state laws, homeowners may have several options to consider. Before making a decision, homeowners should understand the costs, requirements, and potential consequences of each option.
Payment Plans or Assistance Programs
Some local taxing authorities offer installment arrangements, exemptions, deferrals, or other assistance programs for eligible homeowners.
Home Equity Loans or Refinancing
Homeowners with sufficient equity who meet applicable income and credit requirements may be able to obtain financing to address outstanding property obligations.
Property Tax Redemption
If a tax sale has occurred, homeowners may have a limited opportunity to redeem their property by satisfying applicable obligations. Redemption procedures and deadlines vary by state.
Selling the Property
For some homeowners, selling their property may provide an opportunity to satisfy outstanding taxes and other obligations from the proceeds of the sale.
Understanding Residential Sale-Leaseback Transactions
For homeowners with substantial equity, a residential sale-leaseback may be another option worth understanding.
Under SKYDAN Equity Partners’ Residential Sale-Leaseback Program, qualified homeowners sell their property to SKYDAN and continue living in the home under a lease agreement.
Monthly rent payments are deferred, meaning homeowners do not make monthly rent payments during the agreed lease term. Deferred rent accumulates and is included in the amounts payable under the transaction documents.
The program provides two potential paths:
Repurchase the Property: Homeowners have a contractual option to repurchase the property at the applicable option purchase price, which includes deferred rent and other amounts specified in the agreement. Financing to complete a repurchase is not guaranteed.
Sell the Property: If the property is sold to a third party, homeowners may receive remaining net proceeds after SKYDAN’s contractual amounts and applicable selling costs are paid.
Because ownership transfers to SKYDAN at closing, homeowners should carefully consider the financial implications, lease obligations, repurchase terms, and available alternatives before proceeding.
As with other real estate transactions, existing mortgages, liens, and other obligations affecting the property’s title are reviewed during the closing process. Eligibility depends on property equity, condition, title status, location, and applicable state requirements. Not every homeowner or property will qualify.
Property Tax Liens and Sale-Leaseback FAQs
Property tax liens can raise questions about borrowing, property ownership, and real estate transactions. The following answers explain common considerations and how SKYDAN’s Residential Sale-Leaseback Program differs from traditional financing.
Can I get a loan to pay property taxes?
Can I get a property tax loan with bad credit?
How do property tax loans work?
Can I get a home equity loan if I owe property taxes?
What happens to liens and amounts owed against the property at closing?
Will I still own my home after the transaction?
Can I purchase my home back?
Yes. At the end of the agreement, SKYDAN’s current program provides the option to purchase the home back at the original purchase price plus deferred rent. Alternatively, you may choose to sell the property at its current market value and receive the additional equity, subject to the agreement terms.
Do I have to make monthly rent payments?
Under SKYDAN’s current program, rent is deferred until the end of the agreement, so no monthly rent payment is due during the lease term. The lease period is mutually agreed upon and may extend for up to two years.
Residential Sale-Leaseback Service Areas
Illinois
Ohio
Indiana
Florida
Wisconsin
Arizona
Testimonials
Happy Customers
Learn More About Home Equity
How to Refinance a Mortgage With Bad Credit
Do you want to learn how to refinance your mortgage with bad credit and improve your financial standing. Keep reading to unlock new opportunities today!
Drowning in Debt? You Have More Options Than You Think
If you’re a homeowner buried under credit card balances, medical bills, property tax debt, or other financial obligations, you’ve probably seen the ads: “Consolidate your debt into one easy payment!” Debt consolidation companies promise relief, but the reality is...
Home Equity Options for Bad Credit: HELOCs, Loans & Alternatives
Millions of homeowners today have significant equity in their homes but struggle to access it because of credit challenges. Traditional lenders place heavy emphasis on credit scores and debt-to-income ratios. As a result, homeowners who have built substantial housing...
Learn More About SKYDAN Equity Partners
SKYDAN Equity Partners offers a residential sale-leaseback program for qualified homeowners seeking an alternative way to use their home equity while continuing to live in their property.
SKYDAN is accredited by the Better Business Bureau, and homeowners can review customer experiences through Google and BBB reviews.