Sell Your House If You Owe Back Taxes in Texas

Owing back property taxes in Texas is more common than most homeowners realize — and it does not have to mean losing your home. Whether you are a few months behind or years past due, you have options. The key is acting before the situation escalates into a tax foreclosure.

At Optimum Home Buyers, we work with Collin County homeowners who are behind on property taxes. We can make a fair cash offer, pay off the tax lien at closing, and put any remaining equity in your pocket — often in as little as 7–14 days.

How Texas Property Tax Foreclosure Works

In Texas, property taxes are a lien on your home from the moment they are assessed. If you fall behind, the taxing authority can file suit and ultimately force a sale of your property to satisfy the debt. The timeline varies by county, but the process typically looks like this:

Year 1–2: Penalties and interest accumulate rapidly. Texas adds a 6% penalty in February, then 1% per month through June, plus a 12% collection fee if the account is turned over to a delinquent tax attorney — which typically happens by July 1.

Year 2–3: The taxing authority files a lawsuit. Once a judgment is entered, they can proceed to a tax sale.

Tax Sale: Your property is auctioned at the county courthouse. Unlike a mortgage foreclosure, Texas does give homeowners a right of redemption after a tax sale — but only for 2 years for non-homestead properties, and the redemption amount increases significantly over time.

The bottom line: the longer you wait, the more you owe, and the fewer options you have.

Your Options If You Owe Back Property Taxes

Pay the Taxes Directly: If you can pay the full amount owed — including penalties, interest, and attorney fees — the lien is released and the process stops. Contact the Collin County Tax Assessor-Collector’s office to get a payoff statement.

Property Tax Loan: Texas-licensed property tax lenders can pay your delinquent taxes on your behalf and set up a repayment plan. This stops the penalty and interest from the taxing authority, though you will pay interest to the lender. This is a viable option if you plan to stay in the home long-term.

Payment Plan with the County: Some taxing authorities will negotiate a payment plan directly. This is more common for homestead properties and for homeowners who are elderly or disabled. Contact the Collin County Tax Office to ask about installment agreements.

Sell the Property: Selling your home — even to a cash buyer — pays off the tax lien at closing from the proceeds. If there is equity in the home above what is owed in taxes and any mortgage, you walk away with that equity. This is often the cleanest and fastest solution, especially if the tax debt has grown large.

Homestead Exemption and Deferral: If you are 65 or older, or disabled, Texas law allows you to defer property taxes on your homestead. Interest accrues, but the taxing authority cannot force a sale while you live in the home. Contact the Collin County Appraisal District to apply.

What Happens at Closing When You Sell

When you sell your home to a cash buyer like Optimum Home Buyers, the title company handles the tax payoff directly at closing. You do not need to come up with the money beforehand. The tax lien is paid from the sale proceeds, and you receive any remaining equity after the lien and any mortgage are satisfied.

This means you can sell your home even if the tax debt is substantial — as long as the sale price covers what is owed. In many cases, Collin County homeowners are surprised by how much equity they have even after paying off years of back taxes.

How Optimum Home Buyers Can Help

We are local Collin County cash home buyers. We buy houses in Allen, Plano, McKinney, Frisco, Wylie, Prosper, and throughout Collin County — in any condition, any situation. We understand tax liens, we work with experienced title companies, and we can move quickly.

If you owe back taxes and are not sure what to do, call us. We will give you a straight answer about what your home is worth and what you could walk away with after the taxes are paid.

Call or text: 469-699-4316
Direct: 972-469-0630
Email: carl.lane@bcrealtygroupllc.com
Website: optimumhomebuyers.co

Get a Free Cash Offer Today

Fill out the form below or call us directly at 469-699-4316. We respond to every inquiry within 24 hours — usually the same day.

We serve homeowners throughout Allen, Plano, McKinney, Frisco, and all of Collin County, TX.