Selling a Tax-Delinquent Property
Falling behind on property taxes is stressful, but acting early usually gives you more options.
Get the exact numbers
Contact your county tax collector or treasurer. Ask how much is owed, what interest and fees are growing, and whether a tax sale or foreclosure date has been set.
Options to ask about
- Payment plans
- Exemptions or relief for seniors, veterans or other groups
- Help from a nonprofit or housing counselor
- Selling the property and paying the taxes at closing
How a sale can handle it
Unpaid property taxes are generally paid from sale proceeds at closing, and the title company shows them on the settlement statement. Rules and redemption rights vary widely by state, so speak with a local attorney or the tax office if a sale date is near.
This page is general information, not legal, tax or financial advice. Rules vary by state and city, so please check with a qualified professional about your situation.
What Happens When Property Taxes Go Unpaid
Unpaid property taxes become a lien on the house. Penalties and interest build every month, and after a period set by state and county rules, the county can sell a tax certificate, tax lien or the property itself. The exact timeline depends on where the house is, so check with your county tax office as soon as you can.
Steps to Take Now
- Get the exact amount owed. Ask the county treasurer or tax collector for a payoff, including penalties.
- Ask about payment plans or exemptions. Many counties offer installment plans, and homestead, senior or disability exemptions can lower future bills.
- Check for other liens. Back taxes often come with unpaid water bills or code fines.
- Know the next deadline. Write down any tax sale or redemption dates.
How Selling Pays Off Back Taxes
When you sell, the title company pays the delinquent taxes from the sale at closing. You do not need to catch up first. If you have equity, the rest goes to you, which is usually much better than losing the house at a tax sale.
Behind on property taxes? Find out what you could walk away with before the next deadline.