Property Taxes-What Happens?

[carol7lynn]

What happens if you don't pay your property taxes on the due date? I know they add penalties but how long before anything bad happens like a lien on the property or a sheriffs' sale.

Thanks
C7L

[good2free]

It depends on your county. My county does not put a lien on the house for at least 2 year late payment. I have not paid in the last 1.5 years.
Who ever buys the house at auction will end up paying these dues.
County get's 18% interest and penalities.

Hope this helps.

[AngelinaCatHub]

Actually in almost all cases, the taxes are sold at auction. The percentile is 18% and those can bid lower interest to win the tax certificate. After three years if the same person owns three consecutive certificates he can apply for a tax Deed. This will force a foreclosure. In other words the house is sold for taxes. If no one purchases the tax certificates the house can be sold on the Courthouse steps for taxes due.

As far as short term non payment, don't worry about it. If you are giving up the house, the taxes go with the house not you. Whomever purchases the house must clear the taxes. 'Hub

[carol7lynn]

Thanks. I'm strapped right now and I was worried they'd sell my house if I was late or didn't pay. I could pay it but if an emergency came up I'd be in a real pickle.

C7L

[Stilltheone]

My county gives me 3 years before they come take my house. We ended up not being able to pay half of last year's taxes by the due date (Aug 1) We had planned on paying them off with this year's tax return, but our mortgage company found out and forced us to pay them early, otherwise they would've started an escrow account for last years, this years, and next year's taxes...something we couldn't afford.

Be careful. If your mortgage company finds out you didn't pay them on time, they could force an escrow account on you.

[carol7lynn]

Thanks.

Couple of questions though.

Who carries your mortgage?
So how long exactly after taxes were due did they force your hand?

From what I learned on our county's assessors website they don't send out delinquency notices until June. Do they also notify the lender at the same time? BofA just took over my loan this month from Wilshire Crredit Corp and I wonder how BofA handles late property taxes and or how long it will take the county to figure out who the real lender is. Like you,I don't want an escrow as that would raise my house payment a couple hundred dollars a month.

Anyone know?

C7L

[AngelinaCatHub]

Thanks.

Couple of questions though.

Who carries your mortgage?
So how long exactly after taxes were due did they force your hand?

From what I learned on our county's assessors website they don't send out delinquency notices until June. Do they also notify the lender at the same time? BofA just took over my loan this month from Wilshire Crredit Corp and I wonder how BofA handles late property taxes and or how long it will take the county to figure out who the real lender is. Like you,I don't want an escrow as that would raise my house payment a couple hundred dollars a month.

Anyone know?

C7L

The County will not tell you mortgage company. They don't even know your mortgage company. All they know is your parcel number and that you own the place. They will publish in the newspaper delinquent taxes once the deadline passes. That is when people go out and purchase tax certificates. You redeem these certificates for the taxes owed plus the interest accrued. Usually starting at 18% per annum. People bid on these unless there is only one person interested. They bid by lowering the interest rate they would take for redemption of the certificate. 'Hub

[carol7lynn]

Thanks Cat.

C7L