Property owners have 2 years from the date taxes become delinquent before they risk losing the property.
If you are behind on your taxes, and if you are unable to secure the money to pay the back taxes before the 2-year period is up, you should consider selling the property. Auctions, by their very nature, appeal to investors who want to buy your property at rock bottom prices. If you sell your property before the auction, you will sell it for a higher price. Call us today if you would like an offer or to discuss your options.
If you are in this tough position, understanding how the process works is important. The article below explains the 2 steps: Tax Certificate sale and Tax Deed sale.
You must pay your real estate tax on or before April 1 (due date).
After April 1 but before June 1, you can pay off your taxes in full with a 3% penalty.
On June 1 of each year, the delinquent tax bill is auctioned off to an investor through a tax certificate sale.
Homeowners are not at risk of losing their property at this point. The winning bidder for the tax certificate must hold the note for a minimum of 2 years before filing for tax deed sale. The homeowner can pay off the taxes at any point before.
A tax certificate is an enforceable first lien against the property for unpaid real estate taxes. The sale allows investors to purchase certificates by paying the tax debt. The sale is conducted in a reverse auction style with participants bidding downward on interest rates starting at 18%. The certificate is awarded to the bidder who will pay the taxes, interest, and costs and accepts the lowest rate of interest. If there are no bidders, the certificate is issued to the County at 18% annual interest. Tax certificates last for seven years, but the winning bidder can apply for tax deed sale after 2 years.
The property owner can redeem the auctioned certificate at any time before the tax deed sale by paying the Tax Collector the delinquent taxes plus accrued interest, advertising costs, and fees. After payment is received, the certificate holder is reimbursed the cost of the certificate plus interest, and the lien against the property is removed.
If, after 2 years, the taxes remain unpaid, the certificate holder may file a tax deed application with the Tax Collector and request that the property be sold at a public auction by the Clerk of the Court. This is known as a Tax Deed Sale.
After the tax deed application has been filed, it takes about 3 – 6 months for a property to go to auction. At any time in the process, the property owner can stop the tax deed auction by paying all taxes due, plus interest and fees. Once the tax deed auction has started, however, interest begins accruing at 18% annually, starting the month after application until the owner pays the taxes and fees or the auction occurs.
No, once the tax deed action has started, all outstanding taxes at the time of application are rolled into one amount due. This must be paid in full, along with any accrued interest, costs and charges in order to stop the tax deed auction.
Contact the Tax Collectors office immediately.
To stop the sale, payment can be made in full any time before the sale.
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