How does paying off back taxes at closing actually work?

The title company pulls a current payoff from the county treasurer, the buyer's funds at closing go first to pay the county, then to any other recorded liens in priority order, and the remainder comes to you.

What kinds of liens can be resolved this way?

Tax liens (county, state, federal IRS), mechanic's liens, judgments, HOA liens. The title company handles all of them in priority order.

What if I owe more in liens than the property is worth?

We need to cover the encumbrances and our minimum margin. If the math doesn't work, we'll tell you and suggest other options (negotiating payoffs, a short-sale specialist, a deed-in-lieu).

Will the IRS lien delay closing?

Sometimes. Federal tax liens take longer to obtain a discharge or subordination on. The title company starts that process immediately when an offer is accepted.

Will the public know I had back taxes?

Public records show what they show. We don't broadcast it, but the recorded payoffs will eventually appear in the county record.

Am I represented by an agent in this transaction?

No. Back Forty Real Estate is a licensed Idaho brokerage purchasing this property for our own account. You are not represented by a real estate agent in this transaction. We recommend you have your own attorney review any offer.

Can I keep some of the cash to settle other debts not on the property?

After title and the recorded liens are satisfied, the remaining proceeds are yours to do with as you see fit.

How fast can we close with back taxes involved?

Usually 14–21 days — slightly longer than a clean-title close because the title company is coordinating with the county and any lienholders.

For sellers

Sell a Property with Back Taxes or Liens in North Idaho

Back taxes or a lien on the property? The title company resolves it from the sale proceeds. You don't write a check.

Back Forty Real Estate is a licensed Idaho real estate brokerage (Idaho License #LC51038) purchasing your property for our own account as a principal. We are not acting as your real estate agent, and you are not represented by a real estate agent in this transaction. We recommend you have your own attorney review any offer before you sign.

Back property taxes paid from proceeds at closing.
Liens and judgments paid in priority order from proceeds.
No surprise out-of-pocket payments by the seller.
Title company handles every payoff letter and release.

Get a cash offer on your home

Back Forty Real Estate and SOS House Partners share common ownership and operate together as the buying entity for cash purchases. To start your offer, you'll complete a short intake form on the SOS House Partners site — then we'll be in touch about your home.

Affiliated business arrangement disclosure

Back Forty Real Estate (Back Forty Real Estate Investments LLC, Idaho License #LC51038) and SOS House Partners are under common ownership — both are owned by Cole Turnbull, the principal broker. Because of this relationship, Back Forty Real Estate may refer your inquiry to SOS House Partners, and information you submit here will be shared with SOS House Partners to prepare your cash offer. There is no cost or fee to you for this referral or for receiving a cash offer; we do not charge you to make you an offer or to purchase your property. You are not required to use SOS House Partners or Back Forty Real Estate, and you are free to seek other buyers or list your property on the open market.

Title issues — back property taxes, mechanic's liens, judgments, IRS liens, contractor disputes recorded against the parcel — usually mean the property cannot be conventionally sold without being cleaned up first. With a cash buyer who knows how to work with the title company, that flips: the issues get paid off from the proceeds at closing, in order of legal priority, and you walk with what is left.

Back Forty Real Estate is a licensed Idaho brokerage. We close on properties with title issues regularly. We do not pretend it is simple — some encumbrances need a quiet-title action or a probate before they clear — but we know what is fixable and what is not.

How it works

1
Tell us about it
Send the address and a rough description. Photos help but aren't required. The form takes about 90 seconds.
2
We send a cash offer
Within 48 business hours we email a written cash offer based on recent local comparables and the condition you described.
3
You close — when you're ready
Title work runs through a local company. Typical close is 7–14 days depending on title and any liens. You pick the closing date.

What we buy

Single-family homes in any condition — turnkey to gut-job.
Inherited properties, tired rentals, fixer-uppers.
Coeur d'Alene, Hayden, Post Falls, Rathdrum, Sandpoint and nearby.
Manufactured homes on owned land — case-by-case.
We typically pass on: HOA-restricted condos in active disputes, and active short-sale escrows.

See the full buying criteria →

Want a cash offer for this situation?

Send the address or parcel number — written cash offer within 48 business hours, no obligation.

Get a cash offer →Call (208) 660-6079 →

Where we work

Our office is in Coeur d'Alene, Idaho. We buy across 8 towns in Kootenai and Bonner counties — Coeur d'Alene to Sandpoint, Post Falls to Athol, and every back road in between.

Back Forty Real Estate Investments LLC
720 E. Lakeside Ave
Coeur d'Alene, ID 83814
(208) 660-6079

Coeur d'Alene, Kootenai Co.
Post Falls, Kootenai Co.
Hayden, Kootenai Co.
Rathdrum, Kootenai Co.
Sandpoint, Bonner Co.
Athol, Kootenai Co.
Spirit Lake, Kootenai Co.
Bayview, Kootenai Co.

Frequently asked questions

How does paying off back taxes at closing actually work?: The title company pulls a current payoff from the county treasurer, the buyer's funds at closing go first to pay the county, then to any other recorded liens in priority order, and the remainder comes to you.
What kinds of liens can be resolved this way?: Tax liens (county, state, federal IRS), mechanic's liens, judgments, HOA liens. The title company handles all of them in priority order.
What if I owe more in liens than the property is worth?: We need to cover the encumbrances and our minimum margin. If the math doesn't work, we'll tell you and suggest other options (negotiating payoffs, a short-sale specialist, a deed-in-lieu).
Will the IRS lien delay closing?: Sometimes. Federal tax liens take longer to obtain a discharge or subordination on. The title company starts that process immediately when an offer is accepted.
Will the public know I had back taxes?: Public records show what they show. We don't broadcast it, but the recorded payoffs will eventually appear in the county record.
Am I represented by an agent in this transaction?: No. Back Forty Real Estate is a licensed Idaho brokerage purchasing this property for our own account. You are not represented by a real estate agent in this transaction. We recommend you have your own attorney review any offer.
Can I keep some of the cash to settle other debts not on the property?: After title and the recorded liens are satisfied, the remaining proceeds are yours to do with as you see fit.
How fast can we close with back taxes involved?: Usually 14–21 days — slightly longer than a clean-title close because the title company is coordinating with the county and any lienholders.

Ready to talk about your specific property?

Send the address. We'll send a written cash offer within 48 business hours.

Get a cash offer →More on selling a home →Call (208) 660-6079 →