We Buy Miami Houses with Unpaid Tax Issues
Having any amount of unpaid property taxes can be stressful. The good news is that we have helped other homeowners in similar situations get out from under the pressure of unpaid property taxes and we can do the same for you!
Call us today or fill out our contact form to receive a free no-obligation “AS IS” cash offer within 24 hours! A Miami Casa Buyer’s team member is standing by to help.
Paying Your Real Estate Taxes
The fact is, no one likes paying taxes. Uncle Sam sure has a way of driving the point home of paying if we fall behind in paying our real estate taxes. As you may already know, real estate taxes are collected annually by the Tax Collector’s Office.
Real Estate Taxes become delinquent on April 1 of the following year in which they were assessed. As of April 1, 3% interest is added to the gross tax amount due plus advertising costs and fees.
If you don’t pay your property taxes in Florida, the delinquent amount becomes a lien on your home. (Fla. Stat. § 197.122). Once there’s a tax lien on your home, the tax collector may sell that lien at an auction. This is called a “tax lien sale.” Then, if you don’t pay off the lien, the tax collector may eventually sell the home at what is called a “tax deed sale.”
How tax lien sales work
The tax collector typically sells tax liens at auction over the Internet. After the tax lien sale, the person who bought the lien on your home receives a certificate and along with it, the right to collect the tax debt from you, plus interest. The winning bidder at the tax lien sale will be the person who pays the taxes, interest, and costs and charges the lowest interest rate on the debt. (Fla. Stat. § 197.432)
However, if you owe less than $250 in delinquent taxes and your home has been granted a homestead exemption, the lien cannot be sold at a public auction. Instead, the tax collector will issue the certificate to the county. (Fla. Stat. § 197.432).
How tax deed sales work
Two years after April 1 of the year that the collector issues the certificate, the purchaser who bought the lien can apply for a tax deed from the tax collector. (Fla. Stat. §§ 197.502, 197.482). This initiates the tax deed sale process. The clerk of the circuit court then conducts a tax deed sale, which is also a public auction, to sell the property to the highest bidder. The tax certificate holder (the person who bought the lien) will bid the amount of the debt owed to him or her. This means that if no one else bids on the property, the tax certificate holder gets the home. (Fla. Stat. § 197.542).
Two ways of avoiding a Tax Deed Sale
- Pay your property taxes on time or at the very least do not let your unpaid taxes go unpaid for three years.
- If you are not able to pay your property taxes on time or have decided that your property taxes have become a burden, then selling your home is a second option.