Yes. Unpaid property taxes are a lien on the house, and a lien is paid off at closing from the sale proceeds — the same way a mortgage is. You don't need to catch up on the taxes before you sell. The title company pays the county directly, the lien is cleared, and you receive whatever is left.
How the back taxes get paid at closing
- Title search. When a sale is opened, the title company pulls the property's records. Delinquent taxes, interest and any penalties show up there.
- Payoff figure. Title requests an exact payoff from the county tax collector, good through the expected closing date.
- Settlement statement. Your closing statement shows the sale price, then subtracts the tax payoff, any mortgage, and other liens. The remainder is your cash.
- County gets paid. At closing, the title company sends the payment straight to the county. The tax lien is satisfied and the buyer gets clear title.
You don't need cash up front
This is the part most people don't realize. If you're behind because money is tight, you don't have to find the money first — the house pays its own tax bill when it sells. With us, there are also no agent commissions and we cover normal closing costs, so the numbers on your offer are the numbers you walk away with.
Can you sell with a traditional listing instead?
You can. A regular listing may get a higher price, and it's worth considering if you have the time. The catch with back taxes is usually timing: a listing typically needs repairs, showings, and a buyer whose loan has to close, and many lenders are wary of properties that are deep into tax foreclosure. If your account is already close to or in the redemption period, a sale that can close in a couple of weeks removes that risk.
What if you owe more than taxes?
That's common. A house with back taxes may also have a mortgage, a home equity line, an IRS or state tax lien, or a code-enforcement lien. All of them are handled the same way — paid from proceeds at closing, in order of priority. If you're not sure what's recorded against the property, we'll find out during title and walk you through it before you commit to anything. For federal and state income tax liens specifically, see selling with an IRS or state tax lien.
This is general information, not legal or tax advice, and Rogue Valley Cash Buyers is not affiliated with any county or government agency. Deadlines and amounts depend on your specific account — the Jackson County (or Josephine County) Tax Collector can confirm exactly what you owe and where your property is in the process, and an Oregon attorney can advise on your situation.