I owe Property Taxes on my Property, can I still sell it?
“In this world nothing can be said to be certain, except death and taxes.” – Benjamin Franklin
When you fail to pay your property taxes, things will happen that could cause you to lose your home.
Tax liens will be attached to your home.
The taxing authority may sell those liens, and the buyer could try to force foreclosure on your home.
The city may try to foreclose on your home to settle the debt.
Your lender if the home is mortgaged, may pay the delinquent taxes and then bill them to you, adding them to your debt, and will most likely attempt to foreclose if you fail to reimburse them.
What are Property Taxes and Tax Liens?
When you own property, the local government will levy fees or taxes against your property, and you are expected to pay them annually. The authority uses these to fund the city, to finance schools, roads, police etc. The charge assessed against your property is typically based on the value of the property.
Some lenders will add the cost of the property taxes to your mortgage payments and collect them in an escrow account. If you have to pay them directly yourself, most authorities collect them twice yearly.
What happens if I don’t pay?
When a property owner fails to pay the taxing authority the amount owed will be attached to the home as a tax lien. The lien may result in a tax sale of the property (tax deed sale), or they could sell the tax lien (Tax lien Certificate sale).
With a Tax Deed Sale, the property is sold and the deed transferred to the new owner. A Tax Certificate sale results in the debt being sold. The purchaser can try to collect the debt with additional fees and interest from the property owner. When they don’t get satisfaction, they can then pursue a foreclosure and the ownership deed of the property.
Preventing the Tax sale or Certificate from taking your home.
Most states have a time period after a tax sale where you can pay the buyer of the deed or certificate the amount they paid, plus fees and interest and you can retain ownership of your property. Tax liens take priority over other debts attached to the property, so must be settled before mortgages or other loans secured by it.
With most lenders, falling behind on your property taxes will be treated the same as a default on your mortgage and can result in foreclosure. They will sometimes pay the tax arrears, and then bill you, failing to bring them current will typically result in the lender foreclosing and selling the property.
Can you Help me?
If you are behind on your taxes and in danger of having your property sold from under you, be sure to give us a call or fill in the form above. You would be almost certain to get more from your home with us buying it rather than a foreclosure or tax sale. If you sell to me, I will pay the arrears. bring the house current. I can give you time to move out, I can even get people to help you move if you are not able. When your house goes to a tax sale, it rarely sells for much more than the taxes owed, I will help you maximize your return on your homes sale. Call me now on 510-570-1959 or complete the form above, I will be in touch quickly.