The Bay State Buyers
Selling a House With Tax Liens or Back Taxes in Massachusetts — Before the Town Forecloses
A tax lien on your house does not mean you cannot sell it. It means the lien gets paid from the sale before you do. The danger is waiting: municipal tax title in Massachusetts accrues interest and can end in the town taking the house through Land Court. If the letters have started, this is what they mean and what you can do.
Property tax problems build slowly. A quarter gets missed during a rough year, then another, and the town sends a demand. Interest accrues at rates far higher than any mortgage. At some point the town records a tax taking at the registry of deeds, and the house is in tax title. You still own it and can still redeem it by paying what is owed, but the clock is running, and eventually the town or a lien buyer can petition the Land Court to foreclose your right of redemption. When that happens, the house is gone.
Other liens work differently but end up in the same place: attached to the house, waiting for a sale or refinance to get paid. The IRS files federal tax liens. The Massachusetts Department of Revenue files state ones. Water and sewer bills become liens. So do unpaid condo fees, betterment assessments for a new sewer line, contractor bills, and court judgments.
None of these prevent a sale. A closing attorney's entire job is to find every lien, get a payoff figure for each, and pay them out of the proceeds so the buyer gets clear title. What matters is whether the house is worth more than the total, and how much time you have.
Property tax liens and tax title in Massachusetts
Massachusetts municipal tax collection runs under M.G.L. chapter 60. After taxes go unpaid, the collector issues a demand, and after further nonpayment can record an instrument of taking. From that point the account is in tax title, accruing interest, and the town can either hold it or assign it to a private buyer.
To take the house, the town or assignee files a petition in Land Court to foreclose your right of redemption. You are notified and can redeem by paying the full balance, or ask the court for a payment schedule. If you do nothing, the court eventually enters a judgment and the town owns the house.
The state overhauled these rules in 2024 after a U.S. Supreme Court decision on tax foreclosures. Interest rates on tax title accounts were reduced, and towns must now return surplus equity to former owners after a foreclosure rather than keeping it. That is a real improvement, but it does not make tax title safe to ignore; the interest still runs, the foreclosure still happens, and the surplus is what is left after a forced sale, not what you would get selling on your own terms.
Other liens that can sit on your house
The closing attorney will find all of these, so it is better to know about them first.
- Federal tax lien (IRS). Attaches to all your property. The IRS will issue a certificate of discharge for the house if the lien is paid from the sale proceeds, but the application takes weeks, so it has to be started early.
- Massachusetts DOR lien. Works similarly for unpaid state taxes.
- Water and sewer. Unpaid municipal utility bills become liens collected with taxes.
- Betterments. Assessments for a new sewer, sidewalk, or road are liens paid at sale unless apportioned.
- Condo fees. Unpaid common charges are a lien with priority; the association's 6(d) certificate reports the balance.
- Mechanic's liens, judgments, and child support liens. All are paid at closing or the buyer cannot get clear title.
How liens get paid when you sell
The mechanics are routine. The closing attorney orders a municipal lien certificate from the town collector, which lists every unpaid tax, water, sewer, and betterment charge, and runs a title examination at the registry that turns up recorded liens and judgments. For each one, the attorney gets a written payoff good through the closing date. At closing, the attorney pays each lienholder directly from the purchase price, records the releases, and wires you whatever remains after the deed excise tax.
If the house is in tax title, the attorney pays the redemption amount to the town and the town issues a certificate of redemption that is recorded with the deed. If there is a Land Court foreclosure petition pending, the attorney notifies the town and the case is dismissed once the account is redeemed. The whole point is that you never have to come up with the money yourself. The house pays its own liens.
Selling for cash with liens attached
The main question is arithmetic: is the house worth more than the mortgage plus every lien plus the closing costs? If yes, a sale clears everything and puts the balance in your account, and a cash sale does it fast, which matters when interest is accruing at tax title rates or a Land Court date is approaching.
We do not pay off your liens as a favor or buy them from you; we simply buy the house, and the closing attorney pays the liens from our funds. We have closed on houses with tax takings, IRS liens, and long-neglected water bills, and none of it changes the process, only the timing for getting payoffs. If the liens exceed the value of the house, a regular sale cannot close, and the conversation becomes about negotiating with the lienholders, which is a job for an attorney rather than a buyer. Our foreclosure timeline guide covers the related lender process.
Talk to the town first
Before deciding anything, call the tax collector. Massachusetts towns can enter into payment agreements on tax title accounts under c.60 §62A, often with a portion of the interest waived, and many people never ask. Seniors, veterans, and people with disabilities may qualify for exemptions or deferrals that reduce the bill going forward. If the assessment is simply too high, an abatement application may be worth filing. If you want to keep the house and can afford a plan, that is almost always better than selling under pressure.
Selling is the right tool when the total owed has grown past what you can realistically pay back, when a Land Court petition has been filed, or when the house itself has become more burden than home.
Tell us what is owed and to whom. We will give you a written offer and a realistic estimate of what you would net.
How It Works
The same three steps for every situation. Full details and how we calculate offers →
Tell us about the property
Call (508) 322‑1776 or send the short form. Any condition, any situation — inherited, tenants, repairs, behind on payments.Walk through it with us
A quick visit at a time that works for you, usually within a couple of days. About 20 minutes, and there's nothing to fix or tidy first — we've seen it all.Get your written cash offer
Usually within a day or two of the walkthrough, in writing, with no obligation. Accept when you're ready and pick a closing date that works for you — soon, or after you've found your next place. We close through a Massachusetts closing attorney and cover the standard closing costs.
Tax Liens or Back Taxes: Questions Massachusetts Sellers Ask
Can I sell my house if the town has put it in tax title?
Yes, as long as the Land Court has not yet entered a foreclosure judgment. You still own the house and can redeem it by paying the balance. In a sale, the closing attorney pays the redemption amount from the purchase price, the town records a certificate of redemption, and any pending Land Court case is dismissed. You receive whatever remains after all liens and closing costs.
Do I have to pay off the liens before I can sell?
No. The liens are paid at closing from the sale proceeds. The closing attorney gathers a municipal lien certificate and payoff letters, pays each lienholder directly, and records the releases. You need enough value in the house to cover everything, but you do not need cash on hand. That is one of the main reasons people sell rather than try to catch up.
What about an IRS tax lien on my house?
A federal tax lien attaches to the house but does not block a sale. The closing attorney applies to the IRS for a certificate of discharge, which releases the lien from the property in exchange for payment from the proceeds. The IRS application typically takes several weeks, so it should be started as soon as we have an agreement. We build that time into the closing date.
How much interest is the town charging me?
Tax title interest in Massachusetts historically ran 16 percent per year, which is why balances grow so quickly. A 2024 state law reduced the rate for accounts going forward, but interest still compounds on the overdue amount and the town's fees are added. Ask the collector for a current payoff figure; it is often larger than people expect, and it is the number a sale will need to cover.
Will I get any money if the liens are large?
You receive the difference between the sale price and the total of the mortgage, liens, deed excise tax, and any unpaid charges, so it depends on how much equity is left. We will walk through the numbers with you before you commit to anything, so you know approximately what you would net. If the liens exceed the value, a normal sale cannot close and we will tell you that honestly.
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