What happens if property taxes are not paid?

Question

My friend says that if property (real estate) taxes are not paid the government takes away property, sells it and keeps all the money, regardless of the amount owned. I say that government takes the house and sells it and gives the difference to the owner.

Who is right..?

Thank You.

Answer 1

Depending on the state, it is possible to lose your property for back taxes. Some states sell the lien for the tax amount, and if not paid back, they force it into foreclosure and the new lien holder get the property, the government gets its taxes, and the property owner loses his property.

Answer 2

i am pretty sure either way, you are screwed.

Answer 3

You will continue to accrue penalties at a fairly rapid rate and if you continue to not pay your taxes, after several years they can repo your home...laws vary by state so check with your local tax assessor.

Also if you live in an area hit hard by the foreclosures you can also ask for a re-assessment and have your taxes lowered...to reflect the current value of your home. This can help you catch up.

Most of the time a payment plan will be a good place to start and you might have to make big payments....but dont forget..these taxes are deductable!

Answer 4

They put a lein on your house  

Answer 5

Depending on the municipality, the taxes will continue to accrue penalties and interest.  Finally, the taxing authority will file suit against you in court for the fees and seek to exercise putting a lien against your property.  Once they have that lien in place, it supersedes any mortgage arrangement.  Worst part is though.. you will still owe the mortgage company even though you are no longer in possession of the real estate... Then the property can be sold for the amount of taxes owed on it.  However, any amounts collected above taxes, fees, and other penalties charged, those amounts are refunded to you (if no mortgage) or to the mortgage company.  

Answer 6

Each   taxing   authority  has  different  processes ,

But   they  go  on   the  deliquent  list   and  the  ones  I've  seen ,

The  property  is  sold  for  the  delinquent  amount  and  the  person  who  pays  the  bill  owns  the  property  (  excepting  for  other  liens  that   may  still  be  in  place  from  mortgage  holders  etc ) .

The   delinquent  list  is  usually  published  once  a  year  in  the  newspaper  ,  also  called  tax  sales .

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Answer 7

After real property taxes are not paid for a certain number of years, five in California, my state, the county tax collector can sell the property or in some states, sell the lien rights to any interested private party.  If there is a mortgage, the mortgage holder can pay the tax and declare the mortgage in default and foreclose.  

Answer 8

If it comes down to taking away your house, they sell it and you get nothing. Should've paid the taxes