I am behind on my property taxes because of i am financially strapped for cash. I recently received a tax sale notice for my property. I need to come with the payment by October 3, 2013. I am scared that i will lose my house. I am not sure how a tax sale works, can you somebody please help me with my situation and educate me on what my options are?
1 Answer from Attorneys
In a tax sale, the City sells your bill (actually becomes a lien against the house like a mortgage) to a bidder. The bidder who buys your bill/lien can sit back and let the interest accrue until payment occurs, or can eventually sue you to foreclose the lien. If the bill plus accrued interest is not paid when he sues, the house can go to a Sheriff's sale. This is how many speculators acquire property at a steep discount. If you have a mortgage this also has to be paid at a sale, so this could make the sale more difficult. I also add that the bid for your bill is for an interest rate, which could go as high as 18%, so buying your bill/lien can be a very good investment, unless your house has no or little equity.