Distressed Owners
Selling a House With Back Taxes or Liens in Florida: How Closing Works
By Yogi Ganeshram · 10/31/2026
Yes, you can sell a house with back taxes or liens. They are paid from your sale proceeds at closing, as long as the sale price covers what is owed.
How closing works
- The title company runs a search to find every lien: back taxes, mortgage, HOA, code enforcement, judgments, and others.
- They request payoffs from each lienholder.
- At closing, the payoffs are paid out of the sale price in the order required by law.
- What is left is yours.
If the price does not cover everything
You will need lienholder approval for a short sale, extra cash at closing, or negotiated reductions. Some liens can be negotiated. Property taxes are not negotiable.
Liens that come up most
- Delinquent property taxes
- Mortgage and home equity loans
- HOA assessments
- Code enforcement fines, which can sometimes be reduced
- Judgments and contractor liens
- IRS or state tax liens
Mistakes to avoid
- Not running a lien search early.
- Listing without knowing the total payoff.
- Ignoring a sale date.
What to do this week
Order a title search or ask a title company for a payoff estimate. Then send me the address and I will show you what you would net.
Disclosure: I am a licensed REALTOR with eXp Realty, and I also invest in homes through my own company. If I am ever the buyer, I will tell you in writing before you decide.
Common questions
About Yogi
Yogi Ganeshram, eXp Realty licensed REALTOR, 23+ years, 500+ homes sold, 200+ flips, 400+ short sales with deficiency waivers secured
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This article is general education, not legal or tax advice. Talk to a licensed Florida attorney or tax professional about your situation.
Yoganand Ganeshram PA · Licensed Florida Real Estate Agent — SL 3131685 · eXp Realty in Florida · Equal Housing Opportunity.