What is a Tax Lien Foreclosure?

Everyone knows that failing to pay your property’s monthly mortgage will eventually result in a painful foreclosure. However, those that already own their property could also be subject to a foreclosure process if they fail to make property tax payments.

At the Hegwood Group, our property tax consultants are always here to help our clients ensure that their property taxes are in good standing. No one should have to go through a tax lien foreclosure, but unfortunately, it’s something that flies under the radar for some owners.

Here’s a look at what tax lien foreclosure is and what you can do about it if you find your property in jeopardy of county-enforced foreclosure.

What is a Tax Lien?

Essentially, when an owner fails to make payments on their property’s taxes, the taxes will still need to be paid by some means. In these instances, a government will issue a tax lien that holds a firm grip on the property but allows the owner to make a guaranteed payment on their debt.

If the owner makes no attempt to work with the governing authority or to make any payment on the property tax owed, a tax lien foreclosure process takes place.

When Does the Foreclosure Process Start?

In Texas, the danger of a tax lien on your property is that the sale process can start at any time the entity in power sees fit. If the tax lien foreclosure isn’t contested the process is swift and can be completed in as little as 60 days.

What is the Tax Deed Sale Process in Texas?

If the foreclosure is imminent a tax deed sale will begin for the property. When the foreclosure/tax deed sale process starts, it’s never anything that is going to be a surprise to the property owner. The owner must always receive notice of the sale that includes the date, time, and location of the auction.

During a tax deed sale, the property is auctioned off and sold to the bid that meets the following financial criteria:

  • Minimum bid on the back taxes owed
  • Interest on the property taxes
  • Costs associated with selling the property

Is There a Redemption Period?

Although it can be expensive, just because a tax lien foreclosure process has begun on your property, doesn’t mean you’ve lost it yet. In the state of Texas, the property is still yours up until the actual sale takes place.

If you want to ensure that your property remains yours, you can “redeem” the property by making the following payments:

  • Property taxes in full
  • Interests
  • Penalties
  • Other associated costs with the property

Once all payments have been made, the lien is lifted and the foreclosure is officially stopped.

Get the Property Tax Help You Need from the Hegwood Group

If you are a property owner who has fallen behind on property tax payments or has questions about the amount that you owe on your property tax, now is the time to meet with a property tax consultant!

The property tax consultants at the Hegwood Group are experts in real estate, business, and personal property tax concerns. We can help you review your statements, start the property tax appeals process, and more! Contact us today to learn more about our services and to schedule your free consultation.

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