Understanding how tax sales work and what they mean for property owners.
A tax sale is a public auction where properties with unpaid property taxes are sold to recover the unpaid tax debt. Understanding how tax sales work helps property owners recognize the risks and explore options before losing their property.
When property taxes remain unpaid after the redemption period, the taxing authority schedules a tax sale. At the auction, the property is sold to the highest bidder. The winning bid pays the unpaid taxes, and any excess may be returned to the original owner, depending on state law.
Tax sales attract various bidders including investors, individuals seeking investment properties, and in some cases, the taxing authority itself. Some tax sales involve tax lien certificates where bidders are essentially loaning money to pay taxes, while others involve direct property sales through tax deeds.
Tax sale consequences are significant. An attorney can help you understand redemption options specific to your state and situation.
Disclaimer: Property Resolution Group is not a law firm and does not provide legal advice. Information is educational only.