Stop A Tax Sale
Tax Sales: What You Need To Know
Tax sale is one of the most devastating events any family or homeowner can face. When you have accrued so many debts overtime, some of them are potentially dangerous not to pay. One of them is property taxes. If you fail to pay these – and some other municipal charges – there is every possibility of losing your house to a tax sale.
Don’t worry or panic. One of the first, and best things to do is to remain calm even though people generally are easily agitated in situations like these. Depending on the laws of the state, there are always options to stop a tax sale.
Depending on the laws of your state too, you can either face a tax lien or a tax deed
- Tax Lien
If you are faced with a tax lien, you have full ownership of your house and can continue to do all the things you have done in the house. However, whoever succeeds in the bid for the building attains the position of a taxing authority. This is because the original taxing authority sells its lien to a buyer or bidder in an auction. That way, the successful bidder or buyer of the lien is entitled to full payment of the owed taxes, interests and all other charges that might have accrued, henceforth.
If you are still unable to pay the tax after a specified period of time, the new owner of the lien can file for a foreclosure and eventually attain ownership of the property in your place.
- Tax Deed
A tax deed is usually considered the worse of both situations. Here, the taxing authority of the state sells total ownership of the house. You basically lose your house.
Some states don’t auction and there is no sale or bidding process; the taxing authority automatically issues its lien or deed on your property.
Making the Right Decisions
Even though you should not panic, as that can lead you to making bad decisions, you should act fast so that interests and other annoying charges do not accrue on the debt.
There are many options available to save your house and stop a tax sale.
- You can pay off the debt within the specified “grace” period.
- Or pay the successful bidder or lien certificate holder the amount paid at the sale plus the interest accrued over time.
- Or invalidate the sale by
- showing errors in the lien or sale process,
- showing that you don’t actually owe the alleged taxes or
- giving a compelling reason for not paying those taxes.
However, if you are not able to successfully do any of these, and have another place, say, a relative or family to stay with, selling the house for cash is a good way to pay off the debt and have enough cash at hand, provided the house is worth more than what is owed, to help get you on your feet and in to a new place to live.
At Vision Property Investment Group our buying process is direct and you get all your cash. Since we pay cash, give you a very good and fair deal, and help you close as soon as you are ready, we are confident that we are a very good option for you.