Back Property Taxes & Liens in DFW
Selling a House With Back Property Taxes in Texas
Property tax debt in Texas can escalate quickly. What starts as one missed payment grows with monthly penalties, interest charges, and eventually attorney fees when the account is turned over for collection. But even with significant back taxes owed, you often have more options than you realize.
We buy houses with back taxes and tax liens throughout Dallas County, Tarrant County, Collin County, Denton County, and Rockwall County. In most cases the tax balance is resolved directly from the sale proceeds at closing — you don't need to come up with money upfront.
How Texas Property Tax Delinquency Works
- February 1: Taxes become delinquent if unpaid
- July 1: Account turned over to delinquent tax attorney — 20% attorney fee added
- Ongoing: 1% monthly interest + 6% penalty per year continues to accumulate
- Tax lien sale: County can eventually sell the tax lien to investors who can foreclose
The good news is that unlike mortgage foreclosure, property tax foreclosure in Texas typically takes much longer — often 2+ years of delinquency before any serious legal action. You likely have time to act — but acting sooner means a better outcome.
How a Cash Sale Resolves Tax Liens
When you sell your property through a title company, all liens — including tax liens — are discovered during the title search and must be resolved before the deed can transfer. Here's how it works:
- We make you a cash offer and open title at a licensed Texas title company
- The title company performs a lien search and calculates the exact payoff amount including all penalties and interest
- At closing, the title company pays the tax authority directly from the sale proceeds
- Any remaining equity after the tax payoff goes to you
- You leave with cash and a clean title transferred — no ongoing tax obligation
What If the Taxes Owed Are More Than the House Is Worth?
This is rare but possible, especially on lower-value properties with years of accumulated delinquency. In these situations your options narrow but don't disappear entirely. We'll be honest with you about the numbers and what makes sense — sometimes the best outcome is simply stopping the damage from getting worse.
Other Liens We Regularly Deal With
Beyond property taxes, we frequently help homeowners with properties that have:
- Judgment liens from lawsuits or unpaid debts
- HOA liens from unpaid dues
- Code enforcement liens from city violations
- Mechanic's liens from unpaid contractors
- IRS federal tax liens
All of these can typically be resolved at closing from sale proceeds. A title company handles the payoffs — you don't have to negotiate with creditors directly.